Employment Edit: 8 February 2024

Employment tribunal fees

Last week, the government launched a consultation into the proposed introduction of a £55 fee for employment tribunal claims and appeals to the EAT. The proposed tribunal fee is a flat rate so would remain the same regardless of whether the claim covers one complaint or multiple complaints. Those who cannot afford the fee would be supported via a fee remission scheme.

A previous fee regime was in force from 2013 to 2017, before the Supreme Court held that it was unlawful as it effectively prevented access to justice. The new proposed fee rate of £55 is much lower than the rates under the previous fee regime, which included fees of up to £1,200 for an unfair dismissal or discrimination claim.

The consultation closes on 25 March 2024. If implemented, the fees may be payable from as early as November 2024.

Illegal working penalties

The implementation date for increased illegal working penalties has now been confirmed – the new rates will come into force from 13 February 2024. From that date, the maximum civil penalty will be £45,000 per illegal employee for a first breach (up from £15,000), and £60,000 per illegal employee for repeat breaches (up from £20,000). An employer could face a civil penalty if they are found to have employed an illegal employee and have not conducted valid right to work checks.

An updated code of practice on preventing illegal working will also come into force on 13 February 2024.

Equal pay and pay reporting expansion

Earlier this week, the Labour Party announced its proposal (if elected) to extend full equal pay rights to black, Asian and ethnic minority workers and disabled workers. Currently equal pay claims can only be brought where there is an alleged difference in pay or other contractual terms based on sex, although it is open to workers with other protected characteristics to bring direct or indirect discrimination claims in relation to their pay. Equal pay claims are governed by a different and more complex mechanism, and it remains to be seen whether that mechanism would be adapted if it were to be applied to workers with other protected characteristics.

It has also been reported that Labour would introduce mandatory ethnicity and disability pay gap reporting and would enact the ‘dual discrimination’ provisions of the Equality Act 2010, which have not yet been brought into force. Dual discrimination allows an employee to bring a discrimination complaint based on multiple protected characteristics (e.g. age and sex). Further details on these proposals are awaited.

Minimum service levels challenged

The Public and Commercial Services Union (PCS) has indicated that it intends to launch judicial review proceedings challenging the legislation that introduced minimum service levels affecting border security. Although part of this legislation is specific to border security, PCS’ statement also refers to challenging the Strikes (Minimum Service Levels) Act 2023. That Act grants the Secretary of State the power to set minimum service levels for specified public services in key sectors, including health services, education and transport.