By Daniel Hunter

Leading business leaders at the British Chambers of Commerce (BCC) have backed plans to make past and present workers who sue their employer pay a fee.

They claim that it would deter the number of bogus claims in the system and give firms the confidence to hire employees.

The BCC did go on to say that any individual seeking compensation worth more than £20,000 at tribunal should pay a higher fee than those claiming for smaller amounts.

“The tribunal system has long been in need of reform," John Longworth, Director General of the British Chambers of Commerce (BCC), said.

"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.

"However, the government hasn’t got it quite right. 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.

“The introduction of claimant fees could be a real confidence boost for business. However, 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.”

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