Employment tribunal claims fall by 79% after fees introduced

The report’s analysis of Ministry of Justice figures shows that since the introduction of fees in July 2013 there has been a 79 per cent fall in overall claims taken to employment tribunals. 

The TUC is concerned about the particular drop in the number of claims by women and low-paid workers. 

The report highlighted these findings: 

• There has been an 80 per cent fall in the number of women pursuing sex discrimination claims. Just 1,222 women took out claims between January and March 2014, compared to 6,017 over the same period in 2013; 
• The number of women pursuing pregnancy discrimination claims is also down by 26 per cent, with just three per cent of women seeking financial compensation after losing their jobs;
• Race and disability claims have plummeted – during the first three months of 2014 the number of race discrimination and sexual orientation claims both fell by 60 per cent compared to the same period in 2013;
• Disability claims have experienced a 46 per cent year-on-year reduction;
• There has been a 70 per cent drop in workers pursuing claims for non-payment of the national minimum wage;
• Claims for unpaid wages and holiday pay have fallen overall by 85 per cent. The report says that many people are being put off making a claim, because the cost of going to a tribunal is often more expensive than the sum of their outstanding wages;
• 24 per cent of workers who applied for financial assistance to take claims received any form of fee remittance; and
• Even workers employed on the minimum wage face fees of up to £1,200 if a member of their household has savings of £3,000.

TUC general secretary Frances O’Grady said: “By charging up-front fees for harassment and abuse claims the government has made it easier for bad employers to get away with the most appalling behaviour. 

“Tribunal fees are part of a wider campaign to get rid of workers’ basic rights. The consequence has been to price low-paid and vulnerable people out of justice.”

The changes were brought about in response to concerns from employers about the vast scale of legal costs they were having to spend on claims. 

Neil Carberry, the CBI’s director for employment and skills said: “Firms have been frustrated for years by both delays in the system, and false and misleading claims taking up time and resources. Early conciliation via ACAS and the introduction of fees will help with this – but we still need to reform the system itself.”

Related: Employment tribunal claims fall by almost 80%

By Shané Schutte

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