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

Pub
  • 04 August 2026
  • Employment

From Opportunity to Employment – Building inclusive workplaces together By Breakthrough Supported Employment

oin us for a seminar hosted by Breakthrough Supported Employment on building inclusive workplaces. Clarkslegal’s Lucy White will speak alongside industry experts, sharing insights on fostering diversity and equitable opportunities.

art
  • 04 August 2026
  • Litigation and dispute resolution

Advantages of arbitration over litigation

Arbitration is a method of resolving disputes outside the court system, with the dispute being determined by an independent arbitrator or tribunal rather than a judge. Whether a dispute is best resolved through arbitration or litigation will ultimately depend on the particular facts and circumstances of the case.

art
  • 04 August 2026
  • Immigration

Home Office revokes EU Settlement Scheme Status ‘Granted in Error’ – What does This Mean for EU Citizens?

Recent reports that the Home Office has begun revoking the immigration status of some EU nationals on the basis that it was originally “granted in error” have caused understandable concern among immigration practitioners and those with status under the EU Settlement Scheme (EUSS).

art
  • 03 August 2026
  • Corporate and M&A

Shareholders’ Agreements FAQ Guide – SHA Series Part 1 of 5

Shareholders’ agreements are a crucial but often overlooked tool for companies with multiple owners. While many rely solely on standard articles of association, this can leave significant gaps in governance and protection.

art
  • 29 July 2026
  • Employment

Employment Rights Act 2025: Key takeaways from the Consultation for Zero Hour Reforms

The government published its consultation on reform of zero hour, low hour and agency worker contracts on 2nd June 2026. The consultation closes on 25 August 2026 and so there is still time to get responses in to help shape the operation of the new provisions in the Employment Rights Act 2025 (the “Act”).

art
  • 27 July 2026
  • Commercial Real Estate

What every business should know about commercial leases

Understand the key commercial lease clauses that can affect your business, including break clauses, security of tenure, repairs, alterations, rent reviews and assignment rights. Learn what tenants and landlords should consider when negotiating lease terms.