What today's introduction of Employment Tribunal Fees really means

As of this morning, Employment Tribunals - set up to provide a proper, impartial forum for the resolution of disputes between employees and employers - are no longer free to access.

The Government's legal aid cuts may have attracted their fair share of criticism, but another reform with potentially huge implications for access to justice quietly kicks in today.

As of this morning, Employment Tribunals - set up to provide a proper, impartial forum for the resolution of disputes between employees and employers - are no longer free to access. If you're unfairly sacked, discriminated against or don't receive wages owed from now on, you'll need to pay an upfront cost or bite your lip.

The Ministry of Justice claims that the £84m (or £74m, depending on which particular Government document you happen to be looking at) cost of running the Employment Tribunals Service is too high. They say it's unfair for taxpayers to foot the bill for workers who choose to "escalate workplace disputes to a tribunal" and argue that "drawn out disputes" can "emotionally damage workers and financially damage businesses".

What this translates to is a fees system compelling claimants (almost always employees or ex-employees) to pay £160 just to begin the process of challenging employers over relatively simple matters like non-payment of wages or statutory redundancy pay.

Should they then want to take the case to a full hearing, they'll need a further £230. If that seems onerous, spare a thought for those challenging unfair dismissal, sexual or racial discrimination in the workplace, or sackings arising from whistle-blowing, who will now have to cough up £250 upfront, with a further £950 due for a day at tribunal.

There's no guarantee either that a claimant will get their fees back, even if they win their case. While the new rules allow tribunals to impose a costs order against a losing party, this is entirely at a judge's discretion, so even if an employee proves that they were, for example, the victim of sexual harassment at work, a good chunk of their compensation awarded could well be swallowed up by fees.

Although the Government's own impact assesment freely concedes that it "cannot rule out... fees may have the effect of deterring some claimants from bringing a claim", it insists that the policy is not designed to reduce claims, only to transfer some of the cost from taxpayers. Responding to criticism that fees might put poor people off seeking redress, the MoJ points to the Civil Fee Remission scheme, whereby low-earners and those in receipt of state benefits such as Jobseekers Allowance can obtain a full or partial waiver of fees for tribunal proceedings.

Yet the MoJ is already planning major reforms to Civil Fee Remission and, while it has yet to respond to the four-week consultation it issued in the spring, proposals already floated include a tougher means test, a reduction in the number of benefits accepted as proof of entitlement to fee remission in line with the Universal Credit reforms and a 66 per cent reduction in the time limit for retrospective remission claims, from six to two months.

While it won't be clear for some months what the what the final reformed remissions system will look like, someone who qualifies for free access to an Employment Tribunal today might not necessarily make the grade come the autumn.

It's easy to raise the spectre of feckless employees cashing in on an overly-generous system. Indeed, the controversial Beecroft report commissioned by the Department for Business, Innovation and Skills and its rabidly "socialist"  Secretary of State Vince Cable, warned of sacked workers with "time on their hands", who view a free employment tribunal "as a no cost option".

Beecroft's report didn't trouble itself with figures - he famously put the cost of red tape to business at a distinctly unscientific "Who knows?" - but here are a few to consider. Since hitting a peak of 236,100 in the wake of financial crash - when presumably there was a sudden spike in chancers with "time on their hands" - the number of claims accepted for consideration by employment tribunals has fallen by a fifth.

Only eight per cent of unfair dismissal claims are successful at hearing, while there was a whopping, er, zero per cent success rate for equal pay claims in 2011-12. Nobody wants British companies to be bogged down with unnecessary costs at a time of economic stagnation, but if this is a system stacked against employers, it's doing a pretty good job of pretending otherwise.

Even the Federation of Small Business, which backs the principle of claimants bearing some of the cost for employment claims, has said it believes that the fee levels introduced today may be too high, while prominent employment lawyers argue that the reforms could actually lead to more litigation because of disputes over fee payment deadlines. 

Meanwhile, the Institute of Employment Rights think tank warns that, when combined with other changes like the legal aid reforms, the doubling of the qualifying period for unfair dismissal to two years, the halving of consultation periods for collective redundancies, fees will add to a climate "in which it is extremely difficult for workers to receive compensation and support if they are treated unfairly by their employer." If you're lucky enough to be in work at the moment, that should worry you.

Judges make their way to the Palace of Westminster. Photo: Getty

Matt Foster is deputy editor of Civil Service World and a former assistant news editor at PoliticsHome.

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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

India Bourke is an environment writer and editorial assistant at the New Statesman.