Employment tribunal costs: difficulties of recovery against a losing party

By Simon Fennell

Lord Sugar’s recent win in an employment tribunal proved bittersweet when he was unable to recover any of his costs, but his experience is far from unusual.

The starting point for litigation in the employment tribunal, unlike other courts, has always been that both parties bear their own costs and the losing party is not automatically required to contribute to the winner’s legal expenses. However, in certain, very limited circumstances it is possible to ask a tribunal to make an award of costs.

Lord Sugar is just the latest in a line of frustrated respondents unable to persuade an employment tribunal to award costs against a losing claimant. In his case, not even a judgment stating that the case ‘should never have been brought’ was sufficient for Lord Sugar to be able to recover some of the £50,000 costs that had been incurred in defending a claim for unfair dismissal by former winner of The Apprentice Stella English…

If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.

 

 

 

 

Briefings from Shoosmiths

View more briefings from Shoosmiths

Analysis from The Lawyer

  • Hester: declined bonus worth almost £1m

    Pay checks

    Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future

  • high street 150

    Focus: Alternative business structures - Law and new order

    There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…

Overview

2 Colmore Square
38 Colmore Circus Queensway
Birmingham
B4 6BJ
UK
http://www.shoosmiths.co.uk

Turnover (£m): 87.00
No. of Lawyers: 373