If you are thinking about taking a problem at work to an employment tribunal, one of the first questions on your mind is likely to be: who pays for it?
You may be worried about legal bills, hidden charges, or whether you could end up paying your employer’s costs if things do not go your way.
The good news is that the UK employment tribunal system is designed to be accessible, fair, and affordable, even if you do not have a lawyer. In most cases, each side pays their own costs. However, there are some important exceptions that you should understand before starting a claim.
What Is An Employment Tribunal?
An employment tribunal is a specialist court that deals with disputes between employers and employees. It covers issues such as:
- Unfair dismissal
- Redundancy pay
- Discrimination
- Unpaid wages or holiday pay
- Whistleblowing
- Breach of employment rights
Tribunals are less formal than traditional courts and are designed so that people can represent themselves if they wish.
The General Rule On Employment Tribunal Costs
In the UK, the normal rule is simple:
Each party pays their own costs, regardless of who wins or loses.
This means:
- You pay your own legal fees and expenses
- Your employer pays theirs
- Winning does not automatically mean you can recover your costs
- Losing does not usually mean you have to pay the other side’s costs
This rule exists to encourage people to bring genuine claims without fear of being financially ruined if they lose.
Do You Have To Pay A Fee To Start A Tribunal Claim?
No.
There are no fees to bring an employment tribunal claim in England, Wales, or Scotland.
Before 2017, employees had to pay tribunal fees, but these were ruled unlawful by the Supreme Court. Since then:
- You do not pay to submit a claim
- You do not pay to attend a hearing
- You do not pay to appeal to the Employment Appeal Tribunal
This makes the tribunal process free to access, at least in terms of court fees.
What Costs Might You Personally Have To Pay?
Even though there are no tribunal fees, bringing a claim can still involve costs. These depend on how complex your case is and whether you choose professional help.
Legal Fees (If You Use A Solicitor Or Barrister)
You do not need a lawyer to go to a tribunal, but many people choose to have one.
Legal fees may include:
- Initial legal advice
- Preparing your claim or defence
- Reviewing documents and evidence
- Representing you at hearings
Costs can range from a few hundred pounds for basic advice to several thousand pounds for full representation.
Always ask for:
- A clear fee structure
- An estimate of total costs
- Whether fixed fees are available
Expert Witness Costs
Some cases require expert evidence, for example:
- Medical reports in discrimination or disability cases
- Financial calculations in complex pay disputes
If you instruct an expert, you usually pay their fees yourself.
Your Time And Practical Costs
If you represent yourself, you may still incur costs such as:
- Printing and copying documents
- Travel to hearings
- Time taken off work
- Time spent preparing your case
While these are not always recoverable, they are worth factoring in when deciding how to proceed.
Do You Have To Use ACAS First?
Yes. Before making a tribunal claim, you must normally contact ACAS (Advisory, Conciliation and Arbitration Service).
This is called Early Conciliation.
Important points to know:
- ACAS is free
- They try to help you and your employer reach a settlement
- You are not forced to agree to anything
- If conciliation fails, ACAS gives you a certificate so you can proceed to tribunal
Using ACAS does not affect who pays costs, but it can help resolve disputes early and avoid unnecessary expense.
Can You Be Ordered To Pay Your Employer’s Costs?
In most cases, no. However, employment tribunals do have the power to make a costs order in limited situations.
Costs orders are rare, but they can happen.
When Can A Tribunal Make A Costs Order?
A tribunal may order you to pay some or all of the other side’s costs if it believes your behaviour or claim meets certain criteria.
Unreasonable Or Abusive Conduct
You may be at risk if you:
- Acted vexatiously or abusively
- Disrupted the proceedings
- Ignored tribunal orders
- Failed to attend hearings without good reason
- Misled the tribunal or gave dishonest evidence
The focus is on how you conducted the case, not simply whether you lost.
No Reasonable Prospect Of Success
If the tribunal decides that:
- Your claim never had a realistic chance of succeeding, or
- You continued with the claim after it became clear it was hopeless
…it may consider making a costs order.
This is why it is important to get legal advice early, especially if your case is weak or borderline.
Late Applications Causing Delays
Costs may also be awarded if:
- A hearing is postponed or adjourned
- You applied for the delay less than 7 days before the hearing
- The delay caused unnecessary expense for the other side
Tribunals take last-minute changes seriously, particularly if they inconvenience witnesses or waste tribunal time.
What About Settlement Offers?
Your employer may make a settlement offer during the case, often described as “Without Prejudice, Save As To Costs.”
This means:
- The tribunal does not see the offer when deciding the case
- The offer may be shown later if costs are discussed
If you reject a reasonable offer and later receive:
- The same amount, or
- Less than what was offered
…the employer may argue that you should pay their costs from the date of the offer onwards.
This does not mean you automatically will, but it is a risk you should consider carefully.
Do You Automatically Have To Pay If Costs Are Requested?
No.
If the other side asks for costs:
- The tribunal will hear arguments from both sides
- You can explain why a costs order would be unfair
- The judge has full discretion
Tribunals consider factors such as:
- Your financial situation
- Whether you acted in good faith
- Whether the costs claimed are reasonable
A request for costs is not the same as an order for costs.
Can Your Employer Be Ordered To Pay Your Costs?
Yes. The same rules apply to employers.
If your employer:
- Acted unreasonably
- Defended a claim with no real prospect of success
- Caused unnecessary delays
…the tribunal can order them to pay your costs.
What Is A Preparation Time Order?
If you do not use a solicitor, you can ask for a Preparation Time Order.
This allows you to claim for:
- Time spent preparing your case
- Researching the law
- Organising documents
- Drafting statements and submissions
As of Autumn 2021, preparation time is calculated at £41 per hour.
You will need to show:
- How many hours you spent
- That the time was reasonably required
This can be particularly useful if your employer behaved unreasonably and you handled the case yourself.
Should You Be Worried About Tribunal Costs?
For most people, the answer is no.
Employment tribunals are designed to:
- Be accessible without lawyers
- Avoid punishing people for bringing genuine claims
- Focus on fairness rather than technicalities
As long as you:
- Act honestly
- Follow tribunal directions
- Take advice where possible
- Consider settlement offers sensibly
…the risk of paying the other side’s costs is low.
Final Thoughts: What You Should Remember
If you are thinking about an employment tribunal, keep these key points in mind:
- There are no tribunal fees
- Each side usually pays their own costs
- Costs orders are exceptional, not routine
- Unreasonable behaviour creates the biggest risk
- You can claim preparation time if you represent yourself
- Legal advice early on can save stress and money later
Understanding how tribunal costs work puts you in a much stronger position. It allows you to focus on your case, not your fears, and decide the best way forward with clarity and confidence.