Figures published by the Ministry of Justice yesterday show a 59% drop in the overall number of employment tribunal (ET) claims. LAG believes this fall in people seeking justice over disputes in the work place can be mainly attributed to the introduction of fees for ET cases by the government last year. We are calling on ministers to review this decision due to the injustice this is causing.

 

The figures show that the number of single claims for the period January to March dropped from 13,739 in the same quarter last year to 5,619 this year.  The statistics for the previous quarter, October to December 2013, showed an even greater overall reduction in cases for the comparable quarter of 79%. According to the report, claims for unfair dismissal have dropped by 62%. The numbers of employees bringing discrimination claims has plummeted even further, with 80% fewer claims compared to the same quarter last year.

 

In July last year the government introduced fees to bring an ET claim. Individual employees bringing unfair dismissal and discrimination claims now face costs of £250 to lodge a claim and £950 if it goes to a hearing. If an applicant is successful at the tribunal they can recover the costs of the fee, but as most cases are settled prior to a hearing many employees will not be able to recover this.

 

Claims for unpaid wages, which often involve small amounts of money, have dropped by 85% in the last quarter. The cost of bringing these claims is £160 to lodge a claim and £230 if it goes to hearing. Ironically, it is now cheaper for many aggrieved employees to issue a claim in the County Court for unpaid wages rather than in the specialist tribunal. A claimant is also more able to recover any fees for bringing a claim in the Court if the case does not proceed to hearing.

 

LAG believes that the figures show that the fees are acting as major disincentive for employees to bring cases. While we are probably a few months off yet establishing what the steady state will be for the numbers of ET claims going through the system, such is the drop off in cases over the last two quarters, we would argue that the government needs to review the fees now to stop the substantial injustice in workplaces this is causing. We would also argue that, such is the decline in claims, the government is unlikely to hit its financial targets to make the ET system self financing and this will have a knock -on impact to the MoJ's budget.

 

A legal challenge to the fees is being brought be the trade union Unison. The Union is arguing that the impact of fees discriminates against women and the case, which will be heard by the Court of Appeal later in the year, will turn on whether the statistics for new cases demonstrates a discriminatory effect. Let's hope the government thinks again about ensuring justice for employees, rather than risk being forced to do so by the Court.