GBP1,200 cost for unfair dismissal claims is challenged in UK's highest court

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Steep rises in fees for bringing unfair dismissal claims at employment tribunals – which have led to a 70% fall in the number of cases – are to be challenged at the UK’s highest court.

The supreme court on Monday will hear a final appeal brought by Unison, which says that costs of up to £1,200 are preventing many mistreated workers – particularly those on low incomes – from obtaining justice and are discriminatory.

The two-day hearing is the culmination of a four-year legal campaign by the union on behalf of its members. Unison lost in the high court and the court of appeal but has been given permission to argue its case before the supreme court.

Seven justices headed by the court’s president, Lord Neuberger, will consider the claim – a sign that the court recognises its legal significance. The action is against the lord chancellor and justice secretary, Liz Truss.

Commenting before the hearing, Unison’s general secretary, Dave Prentis, said: “If an employer breaks the law and treats one of their employees unfairly, they should be challenged. It cannot be right that unscrupulous bosses are escaping punishment because people simply don’t have the money to pursue a case.

“The introduction of fees was a terrible decision. It has denied many thousands of people the right to seek justice. Bad employers are having a field day, safe in the knowledge that few will be able to afford to challenge them at a tribunal.

"The government originally said making people pay would weed out vexatious claims. All it’s done is penalise lower-paid employees with genuine grievances. That’s why it’s so important our legal challenge succeeds.”

The coalition government introduced employment tribunal fees in July 2013. Fees start at £160 for issuing a claim for lost wages or breach of contract plus a further £230 if the case is heard in a tribunal.

For more serious claims, such as unfair dismissal or discrimination, there is an issuing fee of £250 plus a hearing fee of £950 – making a total of £1,200. Appeals against decisions cost a further combined sum of £1,600.

In January, the government produced its long-awaited review of the impact of fees, showing that there had been a 70% drop inthe number of cases since 2013.

At the same time the justice minister, Sir Oliver Heald QC, brought in a fee-waiver scheme for the lowest paid. “It is right that those who can afford to should contribute to the cost of employment tribunals,” he said.

“Under our reforms, record numbers are bringing forward disputes in tribunals or through the Acas conciliation service. Costs should not prevent anyone bringing claims, so we are extending our help with fees scheme and will introduce a green paper on further legal support measures.”

In a critical report, the Commons justice select committee last summer dismissed earlier MoJ attempts to blame the drop in cases on the economic turndown. The committee’s chair, the Conservative MP Bob Neill, said at the time: “The MoJ has argued that changes to employment law and the improving economic situation, as well as the pre-existing downward trend in the number of employment tribunal cases being brought, may account for part of the reduction in the number of cases.

“These may indeed be facts, but the timing and scale of the reduction following immediately from the introduction of fees can leave no doubt that the clear majority of the decline is attributable to fees.”