What Happens If I Lose My Employment Tribunal Case?

Losing an employment tribunal claim is a difficult outcome, but it does not necessarily mean facing a large costs order or having no further options. Understanding what happens after an unsuccessful claim is important before you decide whether to bring one.

Do You Have to Pay the Employer's Legal Costs?

Employment tribunals operate under a no-costs regime in most cases. The general principle is that each party bears their own legal costs regardless of the outcome. This is different from the civil courts, where the losing party often pays the winner's costs.

However, the tribunal can make a costs order against a party in specific circumstances. These include where a party has acted vexatiously, abusively, disruptively, or otherwise unreasonably in bringing or conducting the proceedings, or where a claim or response had no reasonable prospect of success. A costs order in employment tribunal proceedings can be significant but is not the default outcome of losing.

What Is a Deposit Order?

At a preliminary hearing, the tribunal can order a claimant to pay a deposit of up to 1,000 as a condition of continuing with a weak claim. If the claim subsequently fails on the same ground that was identified as weak, the deposit may be forfeited and a costs order is more likely to follow.

Can You Appeal?

Yes. You can appeal to the Employment Appeal Tribunal (EAT), but only on a point of law. You cannot appeal simply because you disagree with the tribunal's assessment of the facts or the weight given to the evidence. Grounds for appeal include that the tribunal made an error of law, that its decision was perverse, or that procedural irregularities affected the fairness of the hearing.

The time limit for lodging an EAT appeal is 42 days from the date the written judgment was sent to the parties. This deadline is strictly applied.

Summary

Losing an employment tribunal claim does not automatically mean paying the employer's costs. Costs orders are the exception, not the rule, and are reserved for unreasonable conduct. Appeals to the EAT are available on points of law only, within 42 days of the written judgment.

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