Could this see the end of spurious Employment Tribunal claims?

The Government has outlined two options for the introduction of fees in order to take a claim to an Employment Tribunal.

Option one is that an initial fee of between £150 and £250 will need to be lodged for a claimant to bring a claim, with an additional fee of between £250 and £1,250 if the claim goes to a hearing, with no limit to the maximum award a tribunal could grant. Option two is a single fee of between £200 and £600, but this would limit the maximum award to £30,000, with an option of an additional fee of £1,750 for those who are looking for awards above this limit.

In both of the above options, the tribunal would have the power to order the unsuccessful party to reimburse fees paid by the successful party.

Published statistics show that there were 218,100 claims via the employment tribunal system in 2010-11, an increase of 44% on the year 2008-09. The estimated cost to the tax payer rose from £77.8 million to £84 million over the same period.

Justice Minister, Jonathan Djanolgly, said “Currently, the UK taxpayer bears the entire £84 million cost per year of resolving other people’s employment disputes at tribunals. This is not sustainable. We believe that people should pay a fair amount towards the cost of their case. Fee waivers will be available for people on low incomes to protect access to justice. Our proposed fees will encourage businesses and workers to settle problems earlier, through non-tribunal routes like conciliation or mediation and we want to give businesses, particularly small businesses, the confidence to create new jobs without fear of being dragged into unnecessary actions”.

The consultation will continue until March 2012. If approved, the intention will be to introduce fees no earlier than 2013-14.

I, for one, hope the introduction of fees will act as a deterrent to those who decide to 'chance their arm' and bring a claim unnecessarily.