Sector · Employment tribunal
Costs support for employment tribunal claims, where costs orders are the exception rather than the rule but can be significant when they are made.
Qualified Costs Lawyers, regulated by the Costs Lawyers Standards Board (CLSB), supported by experienced Costs Draftsmen.
Employment tribunal costs is one of the most searched legal costs topics in the UK, largely because the rules differ from civil courts. In the tribunal, each party usually bears its own costs. Costs orders can be made, however, where a party has acted unreasonably or a claim or response had no reasonable prospect of success. We help employers, employees’ representatives and advisers prepare and respond to costs applications.
Complex matters
Lengthy discrimination or whistleblowing claims can generate substantial costs. When a tribunal makes a costs order, it may determine the amount itself up to a set limit or order a detailed assessment, which can take place in the county court. We prepare schedules supporting or opposing applications, analyse the costs claimed and handle detailed assessment where larger sums are in issue.
The tribunal must consider a costs order where a party, or its representative, has acted vexatiously, abusively, disruptively or otherwise unreasonably, or where a claim or response had no reasonable prospect of success. It also has power to make orders in other circumstances, such as breach of an order.
Even where the threshold is met, the tribunal has discretion whether to make an order and in what amount, and may consider the paying party’s ability to pay.
A costs order compensates a represented party for legal costs. A preparation time order compensates an unrepresented party for time spent preparing, at a set hourly rate. Wasted costs orders may be made against representatives in some circumstances.
Understanding which order is available, and what evidence supports it, helps parties make proportionate applications or respond effectively.
A clear schedule showing the work done, by whom and at what rate helps the tribunal make a quick and fair decision. It should link the costs claimed to the conduct relied on, where the application depends on that conduct.
We prepare and review schedules, checking rates, time and disbursements, and draft concise submissions on the amount where the order itself is not in dispute.
Where the tribunal orders costs to be assessed rather than fixing the amount, the assessment follows civil procedure principles. A properly drafted Bill of Costs, Points of Dispute and Replies will usually be needed.
We draft or respond to those documents and can represent clients at the assessment hearing, applying the same rigour we bring to civil costs work.
Costs warning letters and deposit orders often lay the groundwork for a later application. Where a tribunal has made a deposit order and the party later loses for substantially the reasons given, that party may be treated as having acted unreasonably for costs purposes.
We help representatives frame costs warnings carefully and assess whether a later application is proportionate, taking account of the tribunal’s discretion and the paying party’s means.
Frequently asked questions
Usually not. Each party normally pays its own costs, but the tribunal can order costs for unreasonable conduct or claims or responses with no reasonable prospect of success.
The tribunal can assess costs itself up to a set limit or order a detailed assessment for higher amounts. The current rules should be checked for figures.
An order compensating an unrepresented party for time spent preparing the case, calculated at an hourly rate set under the tribunal rules.
Yes. We prepare Bills of Costs, Points of Dispute and Replies and can attend assessment hearings.
This page provides general information, not advice on a specific case. Rules and figures change, so check the current position for your matter. Contact our team to discuss it.
Rules and further reading
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