The received wisdom says there are no costs in the employment tribunal. The truth is narrower: costs orders exist, they are rare, and they are aimed at conduct — vexatious, abusive or unreasonable behaviour and hopeless cases — not at losing. This guide walks through rule 74 of the Employment Tribunal Procedure Rules 2024, the Court of Appeal’s approach in Yerrakalva, the £20,000 cap and preparation time rates, and what the published tribunal statistics can and cannot tell us about how rare these orders really are.
Written by John Barwell