Commenting at the closure of the consultation on tribunal fees, BCC director general John Longworth says, ‘The tribunal system has long been in need of reform. Introducing fees for claimants is a step in the right direction as it will help to discourage spurious and baseless claims, and will save employers time and money.’

Longworth adds that those claiming more than £20,000 should pay a higher fee than those claiming for smaller amounts.

‘This will deter vexatious claims for those asking for millions in compensation as a scare tactic, but still allow those with a genuine grievance to access the system.’

According to Longworth, the introduction of claimant fees could be a ‘real confidence boost’ for business, but he says the criteria for exemptions are too broad.

‘Three quarters of claimants won’t end up paying the full fee, reducing the impact of the proposal. It is important to get the tribunal system right for it to make a real difference to employers. This will in turn give them the confidence to hire staff and grow their business.’