Overturning of employment tribunal fees – a wake-up call for employers

In somewhat of a surprise turn of events, the Supreme Court last week ruled that employment tribunal fees, which were introduced in 2013, are in fact illegal.

The decision, which came after a 4 year legal battle and previous hearings in both the High Court and the Court of Appeal, will come into force immediately. Employees can therefore return to the system of lodging a claim at tribunal without cost from this point onwards.  The process of refunding employees who have paid fees to bring a claim over the last 4 years will now begin.

It remains to be seen whether the government will begin a consultation to re-establish a new, perhaps more lenient, fee structure for using employment tribunals.  Alternatively, it may be that the overturning of employment tribunal fees will lead to the old, 'free to access' system remaining for the long term – leaving employers with the constant threat of an employee bringing a claim, however weak or malicious that claim may be, at any point.

Employment contracts, employee handbooks and any other HR documentation needs to be watertight, as do everyday HR practices such as managing holidays, disciplinaries, absence, recruitment, employee engagement etc.