Search

How can we help?

Icon

To award costs or not to award costs?

It used to be the case that recovering costs within the employment tribunal was an exception rather than the rule, and whilst the threshold for recovering costs still remain high, it seems that there has been somewhat of a shift.

Arguably, employment judges are becoming more willing to make cost orders in cases where, for example, there is no reasonable prospects of success. So, how far can the Tribunal go to warn a party of the risk of costs without appearing biased?

In a recent case (Hussain v Nottinghamshire NHS Trust), the EAT held that there was no bias when the Tribunal warned the claimant during the hearing of the risk of costs in pursuing claims that appeared fundamentally weak, having come apart during cross-examination. Indeed, it was noted that not to warn a party of potential costs might amount to a failing in the Tribunal’s duty to ensure that parties are placed on an equal footing.

How far can the Tribunal go to warn a party of the risk of costs without appearing biased?

Costs warning are a great way of focusing a party’s mind, especially an unrepresented claimant, and whilst there is no one better to focus the mind of a party than an employment judge, the key to a successful application for costs is to issue warning throughout the proceedings rather than rely merely on the Judge’s warning at hearing.

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

About this article

Read, listen and watch our latest insights

art
  • 19 October 2026
  • Immigration

Right to Work Checks: Are UK businesses becoming immigration enforcement officers?

The UK’s Right to Work regime has undergone a significant expansion, with changes taking effect from 1 October 2026.

art
  • 15 October 2026

Clarkslegal celebrates continued success in Chambers and Partners UK 2027

Clarkslegal is delighted to announce that we have once again been recognised by Chambers and Partners UK 2027, celebrating continued success across the firm and a number of enhanced individual rankings.

Pub
  • 15 October 2026
  • Privacy and Data Protection

Data breaches and ICO investigations: Responding with confidence

In this podcast Harry Berryman and Zahra Navarro discuss recent ICO enforcement action, common causes of data breaches, and the practical steps organisations should take to respond effectively when incidents occur.

art
  • 14 October 2026
  • Litigation and dispute resolution

London Court of International Arbitration v International Chamber of Commerce: Key differences

Compare LCIA and ICC arbitration rules, costs, confidentiality provisions and expedited procedures. Learn the key differences between these leading international arbitration institutions and how to choose the right option for your commercial dispute.

art
  • 09 October 2026
  • Employment

Neurodiversity, probation and unfair dismissal: What employers need to know

The next few years are introducing landmark changes to employment law in the UK, under the Employment Rights Act 2025. Part of these changes include the amendments to rights to unfair dismissal, reducing the qualifying period for this right to six months.

art
  • 08 October 2026
  • Commercial Real Estate

Packing up rate mitigation – The end of ‘box shifting’?

What is box shifting and how does it affect property owners and tenants? We examine the Court of Appeal’s decision in City of London v 48th Street Holdings and its implications for intermittent occupation, business rates and lease arrangements.