Between 2013 and 2017, anyone taking an employer to an employment tribunal in England, Scotland or Wales had to pay an upfront fee. The policy was one of the most controversial employment law reforms of the decade and its effects are still felt today. If you are a woman running a business or considering your options as an employee, it is worth understanding why the fees were introduced, why they were scrapped, and what the current rules mean for you.

Employment tribunal claims can arise from redundancy, dismissal, discrimination, unpaid wages or whistleblowing. For women in particular, tribunals have long been an important route for challenging pregnancy discrimination, sexual harassment and unequal pay. Knowing how the system works — and how it has changed — helps you protect your interests whether you are bringing a claim or seeking to avoid one.

Why employment tribunal fees were introduced

In July 2013, the coalition government introduced fees for employment tribunal claims. The stated aim was to transfer some of the cost of running the tribunal system from the taxpayer to those who used it, and to discourage weak or vexatious claims.

Claims were split into two levels. Level 1 covered straightforward issues such as unpaid wages, redundancy payments and payment in lieu of notice, with an issue fee of £160 and a hearing fee of £230. Level 2 covered more complex claims, including unfair dismissal, equal pay, discrimination and whistleblowing, with an issue fee of £250 and a hearing fee of £950. A fee remission scheme existed for people on low incomes, but in practice many eligible claimants did not apply or were still left with costs they could not afford.

The impact on access to justice

The effect was immediate and dramatic. The number of tribunal claims fell sharply, with single claims dropping by around two-thirds in the first few years. Trade unions, legal charities and women’s rights groups argued that the fees priced ordinary workers out of justice and had a disproportionate impact on women, particularly those pursuing pregnancy discrimination, sexual harassment and equal pay claims.

Unison challenged the fees through the courts. In July 2017 the Supreme Court ruled that the fees were unlawful because they prevented access to justice and were indirectly discriminatory. The government was forced to stop charging fees and began refunding claimants who had paid them. The refund scheme eventually returned tens of millions of pounds to former claimants.

The current position: no fees, but know your limits

Today, there are no upfront fees for bringing a claim in an employment tribunal in Great Britain. You can issue a claim, attend a hearing and receive a judgment without paying a tribunal fee. However, you may still face other costs, such as legal advice, travel and time away from work, so it is important to weigh the practicalities carefully.

Before you can issue most tribunal claims, you must contact Acas for early conciliation. This free service can help you and your employer reach a settlement without a hearing. You also need to act quickly: most claims must be started within three months less one day of the issue you are complaining about.

Compensation limits are updated every April. For 2024/25, the maximum compensatory award for ordinary unfair dismissal is the lower of 52 weeks’ gross pay or £115,115. The basic award is calculated in the same way as statutory redundancy pay and is capped at 30 weeks’ pay, with a maximum weekly figure of £643, giving a top basic award of £19,290. There is no cap on compensation for discrimination claims.

Note: In early 2024 the government consulted on introducing a £55 issue fee for employment tribunal claims, with a remission scheme for those on low incomes. At the time of writing, no fees have been reintroduced, but it is worth checking the latest government guidance before you take any action.

For women-led businesses, the absence of fees is a reminder to document decisions, follow fair processes and consider employment practices liability insurance. A well-managed grievance or dismissal process is the best defence against a tribunal claim, regardless of whether a fee is charged.

Protected conversations and settlement offers

The 2013 reforms also changed the rules on settlement discussions. Previously, an employer could only have a “without prejudice” conversation about ending your employment if there was already a dispute. Since 2013, employers have been able to hold “protected conversations” before a formal dispute arises, meaning those discussions generally cannot be used as evidence in an ordinary unfair dismissal claim.

This does not mean you have to accept what is offered. The conversation is not protected if you are pursuing a claim for discrimination, whistleblowing, automatic unfair dismissal or certain other rights. If your employer suggests a “quick chat” about your future, take notes, ask for any offer in writing, and do not sign a settlement agreement without independent legal advice. A solicitor or certified adviser must sign off most settlement agreements for them to be valid.

Practical steps if you are considering a claim

• Keep a written record of incidents, dates, witnesses and any emails or messages.
• Check your employment contract, staff handbook and any relevant policies.
• Raise the issue formally through your employer’s grievance procedure if you feel able to.
• Contact Acas for early conciliation within the time limit.
• Seek advice from a solicitor, trade union, Citizens Advice or an employment law specialist before signing anything.

Conclusion

The brief era of employment tribunal fees showed how a financial barrier can silence legitimate workplace grievances, particularly for women. Although fees are not currently charged, employment law continues to evolve. Whether you are an employee considering a claim or an employer reviewing your policies, staying informed about tribunal fees, protected conversations and compensation limits will help you make better decisions.

For more on your rights at work, see our employment rights section.