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
  • 20 March 2026
  • Corporate and M&A

Drag-Along & Tag-Along Rights: Why Every Company Needs Them

When starting a company, very few founders are aware of the potential issues around shares, share ownership and the implications of that when selling their company.

art
  • 19 March 2026
  • Privacy and Data Protection

WhatsApp in the Workplace

This article explores the potential risks of using WhatsApp for workplace communications, the implications for GDPR compliance and under UK legislation, and provides practical tips for employers to mitigate these risks.

art
  • 16 March 2026
  • Employment

Trade Union Law Changes from April 2026

April brings the next tranche of reforms under the Employment Rights Act 2025 including changes to the statutory recognition scheme making it easier for trade unions to be recognised in the workplace.

Pub
  • 16 March 2026
  • Corporate and M&A

Shareholder Disputes: Managing Shareholder Buyouts and Exits – Episode 3

Join Stuart Mullins and Nicky Goringe Larkin for the third and final episode of our Shareholder Disputes series, where we move from prevention to resolution—exploring what happens when a founder’s exit becomes unavoidable.

art
  • 13 March 2026
  • Employment

When Immigration compliance becomes discrimination: The UK’s uncomfortable workplace balance

UK employers today operate under powerful, and some may say conflicting, legal pressures. On one hand, they must prevent illegal working under UK immigration laws.

art
  • 09 March 2026
  • Commercial Real Estate

Commercial Rent Deposits – A brief overview

A rent deposit is money provided by a tenant to its landlord as security for payment of the rent and performance of the tenant’s covenants contained in the lease.