Labour is considering implementing a fee for workers who wish to take their employers to court, as part of efforts to address pressures from businesses and financial constraints within the Ministry of Justice. This proposal, reminiscent of a plan from the previous Conservative government, has raised concerns among unions.
Reports indicate that an agreement was reached during Chancellor Rachel Reeves’s spending review in June to explore the introduction of tribunal fees. Under the earlier Conservative government, a £55 fee was proposed for employment tribunal claims. However, this plan was influenced by the political landscape following Keir Starmer’s election victory.
Sources mention that the current budget pressures, combined with challenges in the tribunals service, have prompted a renewed examination of tribunal fees. A government source noted that the funding-related issues faced by the Ministry of Justice are leading to consideration of revenue-generating options.
Unions have criticized the potential reintroduction of tribunal fees, arguing that it could create barriers for workers seeking justice. They maintain that fee implementation would disproportionately affect low-paid workers and could deter legitimate claims. Paul Nowak, TUC General Secretary, has emphasized that all workers should have access to enforce their rights.
The Ministry of Justice has acknowledged ongoing budget challenges and the need for decisions on fees in light of current spending reviews. Employment tribunals handle disputes such as unfair dismissal and discrimination, and previously, claims were free to submit until fees were introduced in 2013 and later abolished in 2017 after being deemed unlawful by the Supreme Court.
Labour’s upcoming employment rights bill aims to expand workers’ rights, allowing earlier claims of unfair dismissal and extending the time limits for tribunal claims. However, there are concerns about the existing backlog in the tribunal system, which has swelled amid increasing demands for its services.
Source: https://www.theguardian.com/money/2025/oct/01/labour-considering-charging-workers-for-employment-tribunal-claims-sources-say