In the UK, the costs of an employment tribunal are typically paid for by each party – meaning both the claimant (employee) and the respondent (employer) pay their own legal fees and related expenses – irrespective of who wins the case. However, tribunals do have the discretion to make a ‘costs order’ (in very limited circumstances) under which an employment tribunal can order one party to pay the other party’s legal costs, including expenses such as tribunal fees. These are cases where the judge considers that:
- a party or their representative has acted vexatiously, disruptively, abusively or otherwise unreasonably in either the bringing of the proceedings (or part) or the way that the proceedings have been conducted (or part)
- any claim or response had no reasonable prospect of success
- a hearing has been postponed or adjourned on the application of a party made less than 7 days before the date on which the relevant hearing begins.
