Estate agencies large and small are being advised to prepare for a surge in employment tribunals as The Supreme Court has ruled that employment tribunal fees are unlawful and the Government has abolished them – with immediate effect.

Recent cases in estate agency businesses have included major names like Countrywide, Your Move and Felicity J Lord ( Spicerhaart) along with a number of smaller independents and the cases bring unrest in the office, embarrassment, bad publicity and expense.

Since July 2013, if employees felt that their employer treated them badly and wanted to make a claim, they had to pay fees of either £390 or £1200 (depending on the type of claim).

Many employees couldn’t afford it. Now, they can—and it doesn’t matter whether the employer actually did treat them badly.

The Supreme Court has ruled that fees block access to justice and are discriminatory against certain groups like women, who tend to earn less than men and are less likely to be able to afford the fee.

Now, The Peninsula Group has published a guide on the changes and their potential effect on businesses.

One piece of good news is that if an employer lost a claim since 2013 and had to reimburse their employee’s fees, they are due a refund.

What the ruling means, in summary

• Employees who feel treated badly by employers but could not afford to make a claim will no longer face a financial barrier.
• Employees are more likely to take action for low value claims, such as unpaid wages of £100, because they won’t have to pay the £390 fee.
• Employers using less than watertight procedures because employees would find the fees too expensive are now at great risk.
• Expect more ‘have a go’ claims. Employees may take a chance on a weak case to get what they want from you.
• The early conciliation system (where Acas tries to settle disputes before it becomes a claim) will continue to weed out some claims, but it can’t stop everything.
• The ruling change applies to all fees and includes Employment Appeal Tribunal (EAT) fees, employer fees for review of a judgment and so on.