WIREDGOV

Many of the UK's lowest paid workers will be unable to afford to enforce their workplace rights if the government's proposals for fees for employment tribunals go ahead, says the TUC yesterday.

While the government's plans for tribunals include a 'remission scheme' which will make some of the lowest paid exempt from the proposed costs, the TUC believes that a substantial proportion of workers who are on the minimum wage (NMW) will still be required to pay expensive fees to take a case to an employment tribunal.

New research commissioned by the TUC reveals that most single people paid the minimum wage will not have to pay to go to a tribunal. However a significant proportion of those earning £6.08 an hour, who are part of a couple, will be required to pay up to £345 or more to enforce their basic workplace rights.

This is because the test for the ability to pay will be based on household income rather than an individual's earnings. This assumes that all household income is shared equally between a couple. The TUC does not agree that a woman's capacity to enforce her individual rights should depend on her partner's consent.

Fees proposed for tribunals have also been set disproportionately high in order to deter many people from taking valid claims to tribunal, says the TUC. For example, an individual seeking to recover unpaid wages or holiday pay from their employer will be required to pay upfront fees of either £200 or £400 for their case to be decided. This means that some individuals will be required to pay upfront fees which are higher than the value of their claim. The TUC is also concerned that those challenging discrimination and harassment at work will be required to pay the highest fees.

TUC General Secretary Brendan Barber said: 'All working people should have fair access to justice regardless of what they earn or their partner earns.

'Introducing fees for tribunals will deter many people from taking valid claims to court and will undermine the enforcement of workplace rights. Workers will be more likely to be mistreated at work as rogue bosses will be able to flout the law without fear of sanction.

'The government's remission scheme to protect the lowest paid workers is woefully inadequate and many of the UK's most vulnerable workers will simply be priced out of justice.'

NOTES TO EDITORS:

- The TUC's full submission to the Ministry of Justice consultation on fees for employment tribunals is available at www.tuc.org.uk/tucfiles/249/PricedOutMoJfeesconsultation.pdf

- The TUC commissioned independent analysis of the likely impact of the government's proposed remissions policy from academics Peter Urwin and Franz Buscha at the University of Westminster, and Paul Latreille at the University of Swansea. The research was based on Understanding Society 2009-10 wave - an official survey of some 50,000 individuals in 30,000 households.

- The research considers the impact of the three strands of the proposed remission policy on low income workers.

- The research reveals that only 7.6 per cent of the 33,000 low-income individuals surveyed would not have to pay tribunal fees because they receive means-tested benefits and therefore qualify for remission 1.

- Under remission 2, individuals will be fully exempted from paying fees if their gross annual income and those of their partner if they are in a couple do not exceed a certain thresholds.

While most single people paid on NMW rates (£6.08 an hour) will be exempted, a significant proportion of those earning £6.08 or less an hour who are in a couple would not benefit from remission 2 and would therefore be required to pay fees. The research suggests that:

In childless couple households with income levels above the cut-off for remission 2, between 26 and 36 per cent contain an individual who is paid the NMW.

In one-child couple households with income levels above the cut-off for remission 2, between 27 and 40 per cent contain an individual who is paid the NMW.

In two-child couple households with income levels above the cut-off for remission 2, between 22 and 37 per cent contain an individual who is paid the NMW.

(These figures are presented as intervals to accommodate missing values in labour income and/or hours worked when calculating wages).

- Under remission 3, individuals can be fully or partially exempted from paying fees depending on their monthly disposable income. However the research suggests that only 5.5 per cent who are paid an hourly wage of £6.08 an hour would not be required to pay any level of fees and approximately 70 per cent of such individuals may be required to pay £345 or more.

- All TUC press releases can be found at www.tuc.org.uk

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Gibson T: 020 7467 1337 M: 07900 910624 E: egibson@tuc.org.uk