The government plans to introduce a charge for taking a case to an employment tribunal, which litigants will only get back if they win. Chancellor George Osborne told the Conservative Party conference in Manchester today that the move will reduce the risk to small businesses of hiring new people.

It was imperative ‘to respect the right of those who have spent their whole lives building a small business not to see that achievement destroyed by a vexatious appeal to an employment tribunal’, he told delegates.

The government will also double to two years the amount of time someone must be employed before they can pursue an unfair dismissal claim.

The new charging policy is expected to apply from April 2013. The government will consult on the level and structure of the fees.

It has been reported that workers are likely to face a £150 to £250 charge and a further £1,000 for starting a hearing. The sums are expected to be higher for compensation claims exceeding £30,000.