Prowess Journal

Prowess

SINCE 2002 · WOMEN IN BUSINESS

Employment tribunal fees abolished: your 2026 rights

Employees who feel they have been mistreated at work now face hefty fees before they can take their case to an employment tribunal.
a statue of a lady justice holding a scale

Employment tribunal fees were abolished in Great Britain in 2017, yet the debate over whether to bring them back continues to resurface. If you are a woman running a business or weighing your options as an employee, understanding the history of employment tribunal fees and the current rules will help you enforce your rights or defend your company.

Employment tribunal claims can arise from redundancy, dismissal, discrimination, unpaid wages or whistleblowing. For women, tribunals remain a critical route for challenging pregnancy discrimination, sexual harassment and unequal pay. This guide sets out what changed, what the law says now, and what you need to do next.

Why employment tribunal fees were introduced

In July 2013, the coalition government introduced fees for employment tribunal claims through the Employment Tribunals and the Employment Appeal Tribunal Fees Order 2013. 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. Ministry of Justice figures from 2013-2014 show that single employment tribunal claims fell by around two-thirds after fees were introduced. 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 in R (Unison) v Lord Chancellor that the fees were unlawful because they prevented access to justice and were indirectly discriminatory. The government stopped charging fees immediately and began refunding claimants. By March 2020, the refund scheme had returned more than £32 million to former claimants, according to Ministry of Justice figures published in March 2020.

Current rules and 2025/26 limits

As of August 2026, 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. A 2024 Ministry of Justice consultation proposed reintroducing a £55 issue fee with a remission scheme, but this has not been implemented.

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. Early conciliation can also extend the usual time limit for bringing a claim, which is three months less one day from the date of the act you are complaining about.

Compensation limits are updated every April. For 2025/26, the maximum compensatory award for ordinary unfair dismissal is the lower of 52 weeks’ gross pay or £121,700. 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 £700, giving a top basic award of £21,000. There is no cap on compensation for discrimination claims.

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 discussion 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.

How women-led businesses can reduce tribunal risk

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.

Make sure contracts, handbooks and policies are up to date and reflect current law. Train managers on handling grievances, disciplinary processes and protected conversations. Keep records of performance issues, meetings and decisions. If you are unsure whether a process is fair, get advice before acting.

Conclusion

The brief era of employment tribunal fees showed how a financial barrier can silence legitimate workplace grievances, particularly for women. Although employment tribunal 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 responsibilities as an employer, see our Employment Rights Act Employer Timeline: Key Dates to Know and Flexible Working Rights UK 2026: What Women Need to Know. You can also read the latest guidance on bringing a claim to an employment tribunal and Acas early conciliation.

Charlotte Brierley

A UK business journalist covering innovation, capital, and enterprise trends for women-led ventures. She writes data-driven analysis on funding rounds, startup ecosystems, and emerging business models - with a focus on practical insight for women navigating growth and investment. Before joining Prowess, Charlotte worked in financial communications and early-stage venture research.

Related Post