“Charging Fees in Employment Tribunals and the Employment Appeal Tribunal” (Government Response)

Friday 13th July 2012 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Mr Jonathan Djanogly)]

I have today published the response to the consultation paper “Charging Fees in Employment Tribunals and the Employment Appeal Tribunal”. The response announces the proposed fee structure for these tribunals. The introduction of fees to these bodies will relieve pressure on the taxpayer by transferring some of the cost burden from taxpayers to users. It may also encourage parties to think through whether they might settle their disputes earlier and faster by using other less adversarial methods of dispute resolution, such as Acas conciliation, which will continue to be provided free to users.

These tribunals cost the taxpayer over £84 million per annum and currently no financial contribution is sought from parties. The Government think it is right that those who use the system should contribute towards the cost, in the same way as users of other parts of the justice system contribute to the costs of providing the service.

The consultation closed on the 6 March 2012 and 140 responses were received. The Government have considered carefully the points raised and has decided to introduce a fee at issue and before hearing as well as five application specific fees. The response document sets out the arguments brought forward by respondents and the Government’s consideration of those arguments in more detail. That document and associated impact assessments is available online at: www.justice.gov.uk.

We have decided to extend the existing HMCTS remissions system to protect access to justice for those using the employment tribunal and the Employment Appeal Tribunal. A number of concerns were raised in response to the consultation about the remissions system and how it will operate in light of the Government’s planned reform of the benefit system. It will be necessary to amend the remissions system for these changes and MOJ will therefore be undertaking a separate review of remissions.

Our aim will be to produce a single remissions system for courts and tribunals which is simpler to use, more cost efficient and better targeted to ensure that those who can afford to pay fees do so, while continuing to provide access to the courts and tribunal system to those who cannot. We will take into account the responses received to this consultation when we develop our proposals. A consultation will be published in autumn 2012 and respondents will have the opportunity to provide further comments at this point.

The consultation response document has been deposited in the Libraries of both Houses and we will now work towards implementation of the fee structure in the summer of 2013.