Unfair dismissal claimants to pay for first time in biggest shake-up since 1960s

More than 150,000 working people a year will have to pay for justice in one of the most sweeping shake-ups of employment regulations for half a century which came into force today (Monday 29 July), Unite, the union, has warned.

Those who wish to contest their unfair dismissal or discrimination cases at an employment tribunal (ET) will have to stump up to £1,200 upfront to have their cases heard. This is the first time since the relevant employment legislation was formulated in the 1960s that claimants have been asked to pay.

However, Unite has pledged to pay the ET costs of its members faced with these draconian measures that 'make British workers some of the worst protected in the EU'.

Unite has also criticised the regulation, introduced in April 2012, which means that claimants have to pay for their witnesses’ expenses and loss of daily earnings, even if they are successful.   

Unite plans to continue to cover lawyers costs for its members, whereas commonly those not in a union have to sign a deal to pay up to 33 per cent  of their compensation over to their legal representatives under a contingency fee agreement.

Unite general secretary Len McCluskey said:....“We estimate that this will affect 150,000 workers a year" ....

The government has said that those facing financial hardship can seek to get a remission (rebate) for the costs of an ET hearing – but Unite said the restrictions to gain a rebate are too tightly drawn and unfit for purpose. 

Unite said that the government calculates that a 62-year-old couple with £3,000 in savings are ‘wealthy’ enough to pay the upfront fees to secure a hearing.

Unite director of legal services Howard Beckett said: ...  “The fees are wholly disproportionate.  The median award by a tribunal in 2011-12 was only £4,560, with 20 per cent of awards less than the £1,200 fee"......