Business group says that employment tribunal fees will encourage businesses to hire

As changes to the legal system come in today, business group the Institute of Directors argues that the introduction of user fees for employment tribunals will help businesses to hire.

Alexander Ehmann, head of regulatory policy at the Institute of Directors, said:

The introduction of fees for employment tribunals will have a direct effect on the ability of British businesses to take on new staff. Our members consistently tell us that the threat of being taken to an employment tribunal is a major concern, even if they ultimately win the case. Charging user fees for employment tribunals will reduce the number of unmerited claims which get a hearing, saving money for both employers and taxpayers.

People who cannot afford to pay the fees are protected by a generous remission system, and those who can afford to will have the fee refunded if they win. This reform provides a sensible balance of protection for both employees and employers, which in no way justifies the over-blown rhetoric from some trade unions protesting against the change today.