Industrial Tribunals: Fees

Lord Lea of Crondall Excerpts

Wednesday 19th October 2011 Lords Chamber

Asked By

[Lord Lea of Crondall]

To ask Her Majesty’s Government what evidence they used in deciding to introduce fees of up to £1,000 for access by workers to industrial tribunals.

[The Minister of State, Ministry of Justice (Lord McNally)]

My Lords, the Government will launch a consultation on the introduction of fees in employment tribunals and the employment appeal tribunals later in the year. That consultation document will set out options for proposed fee structures and the indicative levels that might be applied. No decision will be made on the level of fees to be paid until that consultation has been completed.

[Lord Lea of Crondall]

My Lords, I thank the Minister for that reply. Is he aware that the most recent consultation he has announced is only about the amount of fees and not about the principle, at a time when the BIS consultation has not yet been completed? Would he care to enlarge on the evidence to justify Mr George Osborne’s pre-emptive statement to the Conservative Party conference on 3 October, when he cited as evidence simply “perceptions” of “weak or vexatious claims”, when these are in fact being weeded out? Secondly, is the Minister aware of the recent statement by the chairman of the Administrative Justice and Tribunals Council that the Government’s policy is based on limited evidence, which would have,

“a disproportionate and chilling effect on employees”,

and, moreover, that he has expressed great concern about tearing up the BIS consultation process, which has not yet been completed?

[Lord McNally]

My Lords, the Government announced the introduction of fees into the employment tribunals and the employment appeal tribunals in the Resolving Workplace Disputes consultation published in January 2011. The consultation I have mentioned today will seek views on the fee levels, charging points and so on.

On the points that the noble Lord made, this is the whole reason for this second stage of consultation. Small businesses gave evidence about the burdens of what they describe as vexatious claims brought to them. I am sure that others will give evidence to the contrary. That is the point of consultation.