Industrial Tribunals: Fees

Lord Martin of Springburn Excerpts

Wednesday 19th October 2011 Lords Chamber

[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.

[Lord Martin of Springburn]

My Lords, I can recall the days when there were no industrial tribunals. Decent men and women were sacked and could not take any legal action. Are we now introducing a blocking mechanism—that is, fees—for industrial tribunals when the industrial tribunal system has been excellent in resolving disputes?

[Lord McNally]

My Lords, there is no aim to go back to what the noble Lord, Lord Martin, could rightly describe as the “bad old days”. The industrial tribunals system will remain and people will still have access to it. We expect that the tribunals will have the power to order that unsuccessful parties reimburse the fee paid by the successful party so that costs are ultimately borne by the party which causes the system to be used. There is nothing in the system that does not say that a small proportion of the costs cannot be charged. We do not believe that that would fundamentally undermine the very good work that the tribunal system does.