Justice minister Jonathan Djanogly today launched a consultation on introducing fees in employment tribunal cases, with the aim of saving taxpayers £84m.

Two charging options are mooted in the consultation paper. In option one, a claimant will pay an initial fee of £150-£250 to begin a claim, with an additional fee of £250-£1,250 if the claim goes to a hearing, with no limit to the maximum award.

The second option requires claimants to pay a single fee of £200-£600, with the maximum award limited to £30,000. Claimants seeking a higher award will pay an additional fee of £1,750, paying up to £2,350 in total.

In both options, the tribunal would have the power to order the unsuccessful party to reimburse the fees paid by the successful party.

Djanogly said: ‘We believe people should pay a fair amount towards the cost of their case. Fee waivers will be available for people on low incomes to protect access to justice.

‘Our proposed fees will encourage businesses and workers to settle problems earlier through non-tribunal routes like conciliation or mediation, and we want to give businesses - particularly small businesses - the confidence to create new jobs without fear of being dragged into unnecessary actions.’

Introducing fees will bring employment tribunals into line with civil courts, where claimants already pay a fee to use the service, Djanogly added.

However, Victoria Phillips, head of employment rights at national firm Thompsons, said: ‘It is inevitable that fees at any level will make it more difficult to pursue a claim against an employer. But the options being proposed will make it impossible for most.

‘Fees do not distinguish between genuine and unmeritorious claims, they just prevent the claims of people unable to pay, many of whom will have lost their jobs or are owed money by their employers. If you bring a civil claim in the county court for more than £3,000 the fee is £325. It is unjustifiable for a sacked worker to face fees of up to £600 and additional amounts of up to £1,750 to pursue an employment tribunal claim.’

The government is to continue funding the Advisory, Conciliation and Arbitration Service (ACAS), a free service that helps people in employment disputes reach agreement without the need for legal proceedings.

The consultation closes in March 2012 and fees will not be introduced before 2013-14. Read the consultation.