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.

Photo: Getty
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Goodbye, Sam Allardyce: a grim portrait of national service

In being brought down by a newspaper sting, the former England manager joins a hall of infamy. 

It took the best part of 17 years for Glenn Hoddle’s reputation to recover from losing the England job.

Between leaving his job as manager in February 1999 and re-surfacing as a television pundit on ITV during the 2014 World Cup, Hoddle was English football’s great pariah. Thanks to his belief in faith healer Eileen Drewery and a string of unconventional and unacceptable views on reincarnation, he found himself in exile following in a newspaper interview during qualification for England’s Euro 2000 campaign.

But just as Hoddle is now cautiously being welcomed back to the bosom of English football, current incumbent Sam Allardyce has felt the axe fall. After less than two months in charge of the national side and with only a single game under his belt, the former Bolton Wanderers manager was caught up in a sting operation by the Daily Telegraph — allegedly offering guidance on how to circumvent his employer’s rules on third-party player ownership.

The rewards for guiding an English team to major international success promise to be spectacular. As a result, the price for any failure — either moral or performance-related — is extreme.

Hoddle’s successor – the endearing Kevin Keegan – resigned tearfully in a toilet at Wembley after a tumultuous 18-month spell in charge. His replacement, the laconic Sven-Göran Eriksson, provided moments of on-field excitement paired with incredible incidents of personal indiscretion. His tangle with "fake sheikh" Mazher Mahmood in the run up to the 2006 World Cup – an incident with haunting parallels to Allardyce’s current predicament – led to a mutual separation that summer.

Steve McClaren was hapless, if also incredibly unfortunate, and was dispatched from the top job in little over a year. Fabio Capello – who inspired so much optimism throughout his first two years in charge – proved himself incapable of lifting the hex on English major tournament fortunes.

The Italian’s star was falling from the moment he put his name to the oddly timed Capello Index in 2010, although his sustained backing of then captain John Terry over a string of personal misdemeanours would prove to be the misjudgement that ultimately forced his exit. As Allardyce has found out, the FA has become increasingly hard on lapses in moral judgement.

English football is suffused with a strange mix of entitlement and crushing self-doubt. After a decade that has given us a Wimbledon champion, several Ashes triumphs, two Tour de France winners and eye-watering Olympic success, a breakthrough in this area has never felt further away.

In replacing Capello, Roy Hodgson — the man mocked by Allardyce during his hours supping pints with Telegraph reporters — had hoped to put a rubber stamp on a highly respectable coaching career with a spell managing his own country. But this summer’s farcical defeat to Iceland at Euro 2016 put his previous career in a much harsher light.    

Allardyce was a mix of the best and worst of each of his predecessors. He was as gaffe-prone as Steve McClaren, yet as committed to football science and innovation as Hodgson or Capello. He also carried the affability of Keegan and the bulldog spirit of Terry Venables — the last man to make great strides for England at a major tournament.  

And as a result, his fall is the most heartbreaking of the lot. The unfairly decried charlatan of modern football is the same man who built a deeply underrated dynasty at Bolton before keeping Blackburn, West Ham and Sunderland afloat in the most competitive league in Europe.

And it was this hard apprenticeship that convinced the FA to defy the trendy naysayers and appoint him.

“I think we make mistakes when we are down here and our spirit has to come back and learn,” Hoddle mused at the beginning of his ill-fated 1999 interview. As the FA and Allardyce consider their exit strategy from this latest sorry mess, it’s difficult to be sure what either party will have learned.

The FA, desperately short of options could theoretically turn again to a reborn Hoddle. Allardyce, on the other hand, faces his own long exile. 

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