Employment Tribunal Fees

Debate between Chris Stephens and Rupa Huq

Tuesday 1st December 2015 Westminster Hall

[Chris Stephens (Glasgow South West) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Streeter. I congratulate the hon. Member for Ellesmere Port and Neston (Justin Madders) on making an excellent contribution. Like him, I believe it is clear that the introduction of fees for employment tribunals has led to a reduction in claims, and we can only conclude that that is denying workers access to justice. In April to June 2014, the first three months after the introduction of fees, there was an 81% drop in claims. Discrimination claims, for which a £1,200 fee is required, have fallen, and sex discrimination cases were down by 91% in the first year. As indicated earlier, unpaid wages claims, which attract a fee of £390, are down, often because in those cases the fee is more than the amount sought by the worker.

There is no evidence that fees are needed to prevent unfounded claims from being made; on the contrary, evidence gathered by the Trades Union Congress, Citizens Advice Scotland, Citizens Advice England and Wales, the Law Society of Scotland and Bristol and Strathclyde Universities shows that workers with genuine cases are being prevented from lodging their claims by their inability to pay the fees. That can only mean that a growing number of unlawful employment practices are going unpunished, which is detrimental to the achievements of a fair workplace. As the general secretary of Unison, Dave Prentis, said recently:

“There is stark evidence that workers are being priced out of justice and it is women, the disabled and the low-paid who are being disproportionately punished.”

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

Does the hon. Gentleman agree that we are also talking about gender discrimination, because women who are suffering from pregnancy discrimination or maternity discrimination will be afraid to take cases with a price tag of £1,200, so they will suffer in silence?

[Chris Stephens]

I agree with that, and there has been growing evidence in the last few years of pregnant workers being dismissed unfairly. The hon. Lady is absolutely correct to say that the fee of £1,200 would be a natural barrier for women workers, particularly in sectors of the economy that are traditionally low paid, such as the retail sector. It would be very difficult for someone in such circumstances to progress. The hon. Lady’s statements are backed up by the legal affairs spokesperson of Citizens Advice Scotland, who has said:

“Employment Tribunals regularly include cases where people have been un-paid or under-paid for work they have done, or cases where they have been mistreated—including bullying, racism, sexual harassment. People who have suffered such treatment surely have a right to justice, and that right should not be based on their ability to pay.”

All the evidence suggests that the review of employment tribunal fees should include an equality impact assessment. As I have indicated, I am concerned about the divisive rhetoric that we sometimes hear on workplace and trade union issues. We are told that fees were introduced to save the hard-working taxpayer money, but those who are chasing a tribunal or who wish to submit a tribunal claim are, indeed, hard-working taxpayers.

In Scotland, the administration of employment tribunals is due to be devolved under the Scotland Bill. In the Scottish Government’s programme for government, First Minister Nicola Sturgeon said:

“We will abolish fees for employment tribunals, when we are clear on how the transfer of powers and responsibilities will work. We will consult on the shape of services that can best support people’s access to employment justice as part of the transfer of the powers for Employment Tribunals to Scotland.”

That proposal is supported by Scotland’s “workers’ parliament”—the Scottish TUC’s annual congress—and by Citizens Advice Scotland. I will end with the words of the latter in welcoming the Scottish Government’s intention to abolish tribunal fees:

“So we are delighted that the government has addressed this issue, and has seen the urgency in putting it right. These fees should never have been introduced, and they need to be scrapped as soon as possible.”

I could not agree more.