Oral Answers to Questions

Debate between Shailesh Vara and Justin Madders

Thursday 14th April 2016 Commons Chamber

[Mr Vara]

I remind the hon. Lady that this Government have done more for disabled people than any Government before us. [Hon. Members: “Rubbish!”] I have just outlined the amount of money that this Government are spending. Under this Government, there are more than 3.2 million disabled people in employment. Employment helps people to have more fulfilled lives. We do not give up on people, unlike the Opposition parties.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

14. What discussions she has had with the Secretary of State for Justice on the effect of the introduction of employment tribunal fees on access to justice for women who have experienced discrimination at work.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

The hon. Gentleman will be aware that there is a post-implementation review of the introduction of fees in employment tribunals. That will consider, so far as is possible, the impact the fees have had on those with protected characteristics who use employment tribunals, as well as the types of case they bring.

[Justin Madders]

The review has apparently been on the Minister’s desk since February, so I hope we get to hear the outcome soon. According to the Equality and Human Rights Commission, less than 1% of maternity discrimination claims now proceed to an employment tribunal. That means that 99 out of every 100 women who are discriminated against because of their pregnancy have no legal redress. Is he proud of that record or ashamed?

Employment Tribunal Fees

Debate between Shailesh Vara and Justin Madders

Tuesday 1st December 2015 Westminster Hall

[Mr Vara]

As I said in reply to an earlier intervention, I am not making any decisions on the spot, much as the hon. Lady would like to tempt me into those waters.

[Justin Madders]

I do not wish to labour the point, but the question is simple. We are not asking the Minister to make a decision today; we are simply seeking clarification and confirmation that he is not ruling out the abolition of fees altogether as part of the review.

[Mr Vara]

It is important to appreciate that once the Government website publishes terms of reference, which have been there for many weeks, it is not appropriate to seek to change those terms of reference simply because one is in a debate, no matter how many times colleagues try to press me to respond in that way.

[Mr Vara]

I refer the hon. Gentleman to the answer I gave setting out the three objectives against which we are basing the review.

It is important to note that the introduction of fees was designed to encourage parties to use alternative ways of resolving their disputes. Colleagues will appreciate that such means can often be more effective, less stressful and less expensive than formal litigation. For that reason, the previous Administration introduced the new early conciliation service, under which anyone contemplating bringing a complaint to an employment tribunal must first contact ACAS, which will offer conciliation that is free of charge.

ACAS’s evaluation of the scheme during its first year shows that the early results are promising. Although participating in early conciliation is not compulsory for either party, the vast majority do so. In 75% of cases, both parties agree to participate. The scheme was used by more than 80,000 people in its first year. Recent research by ACAS shows that more than 80% of participants in early conciliation were satisfied with the service. Much has been said so far about lawyers acting for people, so it is important to note that we have a free option, without lawyers who charge fees, that will also be less stressful and in an environment that is constructive to arriving at a solution. Sadly, it is often the case that when lawyers are involved, it can be antagonistic. That is not always the case, but it can be the case when two sets of lawyers are acting.

I assure colleagues that it was always our intention to carry out a post-implementation review of the impact of fees on employment tribunals. As Members will be aware, we announced that review in June. The aim of the review is to look at how effective fees have been in meeting the original objectives, as I mentioned. Following their introduction, there has been some concern—it has been expressed today—about the impact fees have had on people’s ability to bring claims before the tribunal. Those criticisms have tended to focus on selected statistics, taken in isolation and out of context. In particular, the fall in the volume of claims issued in the employment tribunal has been pointed to as proof that people are being denied access to justice. That is too narrow a perspective when considering this rather broader issue. The fall in the number of claims is likely to be the result of a number of factors. Crucially, there is a failure to take account of the significant increase in the take-up of conciliation.

[Justin Madders]

The Minister will be aware that conciliation was introduced some time after the fees were introduced. Will he explain why there was such a significant drop immediately after fees were introduced?

[Mr Vara]

I maintain that it is too simplistic to say that the fees were responsible for the drop. If the hon. Gentleman will bear with me for just a moment, I will explain the other reasons that may have contributed to the decline in the numbers. As I have already mentioned, ACAS’s evaluation of the service suggests that the early results are promising. It is noteworthy that the trend was that the number of claims was declining before fees were introduced. It is likely that that was related, at least in part, to the improving economy, which has delivered higher levels of employment. The economy and employment have continued to improve, and it is therefore likely that we would have continued to see a trend of falling claim numbers, irrespective of whether fees were introduced.