The UK’s Labour government is considering reintroducing fees for workers bringing employment tribunal claims, according to an exclusive report in The Guardian this week. 

The move, previously proposed by the last Conservative government in 2024, comes amid pressure from businesses to soften the impact of wide-ranging employment rights reforms due to take effect next year.

Tribunal fees were first introduced in 2013 by the Conservative–Liberal Democrat coalition but were scrapped four years later after the Supreme Court ruled they were unlawful, noting they restricted access to justice. 

Business groups have long argued that the current free-to-file system leaves employers exposed to weak or vexatious claims, forcing many smaller companies into settlements to avoid escalating legal costs.

Harper James’ Simon Gilmour says the government’s latest proposal was “both interesting and surprising” given recent policy shifts.

“Tribunal claims can be costly and disruptive, even where businesses have acted reasonably. Introducing a modest fee system could help deter unmeritorious claims, which often force small employers into settlement,” he notes. 

But given that tribunal claims fell by around 80% almost overnight during the fee regime, Gilmour stresses that any new framework must balance business concerns with workers’ right to pursue legitimate grievances. 

“Access to justice must remain available for genuine cases, but it’s vital to strike a balance. Employers often can feel the current system is weighted against them, with little downside for employees to issue claims, however weak,” says Gilmour. 

“A carefully designed fee structure, with exemptions for the most vulnerable, could create a fairer process that encourages early resolution and ensures tribunal resources are focused on genuine disputes,” he adds.

“Rather than undermining worker rights, this could strengthen confidence in the system by filtering out claims that never had merit, while still allowing legitimate cases to proceed.”

But others argue that a fees regime is unlikely to solve the more pressing problem of a tribunal system already overwhelmed by rising claims and the likelihood it will become further stretched by Labour’s new reforms.

“We already know the Employment Tribunal system in England is in crisis; creaking under the weight of claims,” comments Winckworth Sherwood’s Andrea London. 

“A relatively simple case being lodged now is being allocated the initial case management hearing late next summer and final hearings anything from 12 months-18 months after that,” she explains. 

“It’s simply not sustainable even now, but the Employment Rights Bill and its focus on increasing worker rights can clearly only add to that burden.”

The proposed £55 tribunal fee has been criticised by unions as a “disaster” that will likely “price workers out of accessing justice”. 

“Tribunal fees were a disaster when they were introduced under the Tories. They blocked genuine claims from going forward and cost more to administer than they raise,” said Paul Nowak, general secretary of the TUC.

However, London suggests introducing a nominal fee is unlikely to have any real impact on reducing claims – meritorious or otherwise – given the current backlog and predicted flood of new claims. 

“The point is that the access to justice disaster is actually already here given that it presently takes some two-three years from filing a claim to reaching a final hearing,” she says.

“Labour are misguided if they think fees – especially at such a level – will work to balance the expected 15% increase in claims. We know the percentage claim increase will look more like 25%,” London adds. 

“Tribunal fees previously were much higher and this still had little effect on preventing unmeritorious claims. The ET system needs to be prepared for a further deluge and it needs practical and viable assistance now to prevent it simply from ‘going under’.”

Data shows that discrimination claims have more than doubled in the past seven years, increasing from 17,000 in 2017 to more than 34,000 in 2024. Yet only 3% of claims are upheld in full, with a further 11% upheld in part, according to the “Don’t Divide Us Equality Act Report 2025”.

“More people are coming forward to challenge unfair treatment at work, but the legal system is delivering results for only a handful. It’s leaving employees disillusioned and employers exposed to repeat disputes,” says Magara Law’s Roy Magara. 

Just 3.8% of race discrimination cases are upheld in full, according to the Don’t Divide Us report, while only 4.2% of sex discrimination cases and 5.4% of pregnancy or maternity claims succeeded fully. 

These categories account for nearly half of all Equality Act claims, highlighting that while employees are more willing to challenge unfair treatment in the workplace, they face an uphill battle before the tribunal.

“When the groups most affected by workplace inequality are the least likely to succeed at tribunal, we must acknowledge there is a clear gap between legal rights and real workplace justice,” argues Magara.

Discussions over tribunal fees are reportedly still at an early stage, with no decision yet on whether or how they might be introduced. 

But whether or not Labour’s fees actually materialise, employers should consider implementing stronger workplace policies and preventative action to help stop disputes escalating to tribunal in the first place. 

Staff training, trusted and transparent grievance processes, and objective recruitment practices are crucial in reducing the risk of a claims deluge.

“Employers who take proactive steps in policy and practice will protect both their staff and themselves,” offers Magara. “Those who don’t are likely to see more disputes and a continuing justice gap.”