29 July 2014 will mark the first anniversary of the introduction of legal fees in the Employment Tribunal. Heavily publicised and politically charged, the introduction of fees for submitting a claim, and further fees for progressing to a full hearing, has had a considerable impact on the Employment Tribunal System, as demonstrated in brief by the statistics below:
- 79% Reduction in single cases submitted from August to October 2013 compared with the same period last year. This is likely to be heavily skewed as Claimants rushed to submit claims before the introduction of fees on 29 July 2013.
- 67% Reduction in single cases submitted from October to December 2013 compared with the same period last year.
- 58% Reduction in single cases submitted from January to March 2014 compared with the same period last year.
- 6.4% of Claimants in single cases received remission of Tribunal Fees (24% of applicants).
- £4.5m revenue in fees generated in the 8 months between 29 July 2013 to 30 March 2014. This is projected to be equivalent to £6.7m for the full year, and is significantly in excess of forecasts by commentators.
There is no doubt that the introduction of fees has led to a significant reduction in Tribunal claims. However, the figures released so far seemed skewed and inconclusive. It is likely the figures for the final quarter of its inaugural year will bring some stability in the numbers, and permit commentators to draw more accurate conclusions on the long term impact of fees.
What seems clear is that the fees system is not likely to go unchallenged. Lord Faulks confirmed that the Justice Secretary is committed to reviewing the impact of the introduction of fees in the Employment Tribunal, and the legislation is subject to ongoing judicial review.
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