The tribunal system is reported to cost in excess of £84m per year to administer employees making a claim against an employer doesn’t have to contribute to costs. The Government hope that introducing fees will reduce the number of cases and encourage employees to consider mediation which is considerably cheaper.

There will be two fee structures:

• Level 1 claims, costing £160, will be for straightforward issues like redundancy pay and outstanding wages or holiday pay but if the employer disputes the charge and it goes to a full hearing, the claimant will then have to pay another £230 making £390 in total.
• “Level 2” claims, costing £250, will be for more complicated matters such as unfair dismissal, discrimination, and equal pay issues . If these go to a full hearing a hearing an additional fee of £950 will be levied.

After a full hearing, if either party wants to appeal an decision the fee will be £400 and the further fee £1,200 if the appeal proceeds to another hearing.