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Legal costs are not automatically awarded by the tribunal to either party following a case. However, the employment tribunal does have the discretion to make a costs order pursuant to rules 74 to 84 of the Tribunal Rules 2013. 

Costs may be awarded against a party on the following grounds: 

  • a party (or that party’s representative) has acted vexatiously, abusively, disruptively or otherwise unreasonably in the bringing or conducting of proceedings(or part thereof) — rule 76(1)(a)  
  • a claim or response had no reasonable prospect of success — rule 76(1)(b) 
  • a hearing has been postponed or adjourned on the application of a party made less than seven days before the date on which the relevant hearing begins — rule 76(1)(c)  
  • a party has breached an order or Practice Direction or where a hearing has been postponed or adjourned on the application of a party — rule 76(2) 
  • a final hearing in unfair dismissal proceedings is postponed or adjourned in circumstances where (a) the claimant has expressed a wish to be reinstated or re-engaged that has been communicated to the respondent not less than seven days before the hearing, and (b) the postponement or adjournment was caused by the respondent’s failure, without a special reason, to adduce reasonable evidence as to the availability of the job from which the claimant was dismissed or of comparable or suitable employment — rule 76(3).  
  • the employment tribunal decides an allegation or argument for substantially the reasons given in an earlier deposit order — rule 39(5). 

The above is a non-exhaustive list of the circumstances in which a costs order (of variations thereof) may be made. For further information please see advice as necessary. 

A party may apply for a costs order up to 28 days after the date on which the judgment finally determining the proceedings was sent to the parties (rule 77). 

Usually preparatory steps to secure a party’s position in respect of costs begins early on in proceedings using carefully worded costs warning letters as well as applications to the tribunal for strike out and/or a deposit order. Several members of our team have received full costs awards on behalf of their clients and have also successfully defended costs applications. 

For help and advice please contact Phil Alden on 03333 231 586 or email us.

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