Cost of suing rogue bosses must fall, ministers told

THE fees for employment tribunals are to be reviewed by the government after concerns the cost was stopping workers bringing genuine claims against rogue bosses.

It follows complaints that the £1,200 charge for suing sexist or racist employers was a ‘barrier to justice’.

The new fees were introduced two years ago and applauded by business leaders, who said it would deter vexatious claims and end the damaging ‘no win, no fee’ culture that flourished under Labour.

The number of cases brought against firms by employees later fell by 80 per cent following the changes, as people who would have previously filed a claim were put off by the cost.

But justice minister Shailesh Vara has now revealed the Government is considering a review of the fees. The news will spark fears that the tribunal ‘gravy train’ could return if the fees are slashed, or scrapped altogether.

In response to a Parliamentary question by Green MP Caroline Lucas, Mr Vara said: ‘The Government is currently considering the options for a review of employment tribunal fees. A further announcement will be made in due course.’ In March, more than 400 barristers wrote a letter to then-justice secretary Chris Grayling saying the charges were a ‘barrier to justice’.

Employees who want to sue their boss must pay £160 for an initial claim and £230 for a hearing. Certain cases, including unfair dismissal, cost £250 to launch and another £950 for a hearing. This charge is then reimbursed to employees who win.

Last night, a spokesman for the Institute of Directors said: ‘It is no bad thing when the Government reviews its policies. However, we called for the introduction of fees at the time and we firmly believe they should stay at some level.

‘Businesses, but particularly small businesses, wasted a lot of time and money previously responding to claims, a lot of which were rejected either because they were vexatious or because they did not merit a tribunal.

‘People should have to consider their claims carefully before making them and the fees ensure this is the case.’

Neil Carberry, of the Confederation of British Industry, said the introduction of fees had encouraged the ‘early resolution of disputes’ before they came to court.

But he said they looked forward to working with ministers to ensure the fees ‘are set at the right level’.