Employment tribunals (24): costs

by Practical Law Employment

In employment tribunals, costs do not "follow the event" as they do in the civil courts. This note considers a tribunal's ability to make costs orders, preparation time orders and wasted costs orders under the tribunal rules set out in the Employment Tribunal Procedure Rules 2024 (SI 2024/1155). It details the specific circumstances in which a tribunal may or must make a costs award, such as where a party has acted vexatiously, abusively, or unreasonably, or where a claim or response has no reasonable prospect of success. The note explains the process for applying for costs, the information required in an application and the relevant time limits. It also explores how awards are calculated, the distinction between costs on the standard and indemnity basis, and the tribunal's discretion to consider a paying party's ability to pay. Special considerations for litigants in person and for costs in discrimination claims are also addressed.