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.

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

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.

About this article

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.

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

About this article

Read, listen and watch our latest insights

art
  • 22 January 2025
  • Corporate and M&A

Deal Announcement: Clarkslegal’s Corporate team advise founder on exit from Bristol based hospitality business

Clarkslegal is pleased to have advised the exiting shareholder and director of a hospitality business in the South West on the sale of their shareholding and termination of their employment.

art
  • 20 January 2025
  • Employment

AI Opportunities Action Plan – The impact of AI on employment

The Government has announced its ‘AI Opportunities Action Plan’ in which it plans to increase the use of AI across the UK to ensure the UK is a world leader in the field. 

art
  • 20 January 2025
  • Immigration

Navigating the ETA scheme: A Guide for Travellers to the UK

Here’s a summary of the most significant changes in UK immigration in 2024 and what we can expect in the year to come.

art
  • 16 January 2025
  • Corporate and M&A

Business Asset Disposal Relief: Changes to CGT Relief and the Consequences for Business Owners

Developing a robust cybersecurity strategy is essential to ensuring value retention, securing sensitive data, minimising risks and a seamless transfer during and after the merger or acquisition.

art
  • 14 January 2025
  • Employment

Is this the end of working from home?

In this article, we explore what legal rights employees and businesses have in this context as well as considering more commercial factors.

art
  • 13 January 2025
  • Litigation and dispute resolution

Looking ahead to Dispute Resolution in 2025

2025 is shaping up to be a busy year with  a number of important changes due to be implemented by new legislation. In this article we take a look at a few of the changes affecting litigation and Dispute Resolution.