How much do employment tribunals cost?

In an employment dispute both sides can be uncompromising and unwilling to concede anything, requiring an employment tribunal to decide who is right - which comes at an obvious cost.

For an employee, or more commonly former employee, going through such a process, it is one that can be daunting, worrying, confusing and expensive.

Understanding the financial implications of pursuing a case at an employment tribunal is essential.

For an employer, it is normal and expected that it will be defensive and want to robustly defend its position, it is a natural thing to do, against any legal claim from a current or ex member of staff.

For an employee, feeling strongly aggrieved and vowing to ‘take it all the way’ to get the justice they believe the deserve, recognition or compensation for being wronged or strong desire for an apology, can be an overriding driving force.

An employment tribunal is a judicial body that resolves disputes between employers and employees regarding employment rights in cases that can include claims for unfair dismissal, all types of work-related discrimination claims, breaches of contract or disputes over payment of wages. [1] cited 17.12.24

The tribunal is a setting in which both parties are given equal opportunity to present their evidence and arguments, before a panel of judges make a legally binding decision based on the facts and applicable laws.

Here we take a look at the typical costs that can be involved with an employment tribunal claim.

Do I have to pay to make a claim?

No, not now. In 2013 the government did introduce a charge of up to £1,200 for claimants to bring a tribunal claim, which caused the number of claims to plummet. The controversial charge was removed in 2017 after the Supreme Court ruled it was unlawful and undermined the ability of workers to enforce their rights. [2] cited 17.12.24

However, this does not mean that you can make a claim and it goes straight to an employment tribunal, as you must first notify ACAS (Advisory, Conciliation and Arbitration Service) before making a claim [3]  You will be offered the chance to try and settle the dispute without going to tribunal by using the free 'early conciliation' service. Cited 17.12.24

What are the biggest costs I need to be aware of?

Having to pay for legal representation is the most significant cost if you want a solicitor or barrister to represent you, and the support of legal expertise at an employment tribunal. Having such support to navigate your way through the process can be invaluable and give you the best chance of winning your case.

Legal fees can vary widely depending on the complexity of the case and the experience of the lawyer.

One example of a detailed breakdown of costs for an employee that we found was [4] cited 17.12.24

Straightforward cases would be between £5,000 and £10,000 + VAT. These cases would usually have a monetary value of the claim of up to £10,000.

Cases of medium complexity with one or two case management hearings at the employment tribunal together with a final hearing lasting between one and two days, anticipated total costs of £10,000 to £20,000 + VAT including a barrister to represent you at trial and drafting some of the case papers. These cases would usually have a monetary value of the claim of £10,000 to £30,000.

Complex cases lasting up to a week, anticipated costs of £20,000 to £30,000 + VAT. More complicated cases could cost more and these types of cases would usually have a monetary value of the claim of over £30,000.

Employers can also face significant and similar costs to defend themselves against a claim at an employment tribunal.

Can there be any other additional large costs?

While you are expected to pick up your own legal bill for bringing an employment tribunal claim, there are some circumstances in which the tribunal could order one party to pay the other's costs.  Such an order will usually only be made if it is found that one party has acted unreasonably e.g. bringing a frivolous claim or failing to comply with tribunal orders.

Cost orders are said to be relatively rare, but they can be substantial. A notable example is the reported case of a former council employee who was ordered to pay around £60,000 towards the employer’s legal fees. The claims of discrimination and harassment on the grounds of race and/or disability and for detriment suffered for alleged whistleblowing were found to be ‘wholly misconceived’ [5] cited 17.12.24

Can I save on costs

Given the substantial legal costs involved it is sensible to explore other options and support that may be available, such as:

• Free advice and support can often be provided by services such as Citizens Advice, ACAS or a local law centre. If you are a member of a trade union it can provide legal support with some cases, which is covered by your membership fee.

• Review and check whether your home or car insurance policy includes legal expenses cover because that can be used to cover the cost of a tribunal. Support will often be provided after an assessment of your case and it being established and determined that your claim has a better that than 50 per cent chance of success.

• There are some solicitors who offer ‘no-win-no-fee’ arrangements, which will mean that you will only pay for the legal support if you actually win your case.

• It is often the case that no one knows your case better than you, and you can represent yourself at an employment tribunal. It is not straightforward and it can be incredibly difficult, but make sure you are well-prepared and know and understand the tribunal process. Tribunal hearings are open to the public, and it is always a good idea to go and sit in and listen to a case/s before you do your own, so you can see and experience how it all works.

• Carefully and sensibly consider any opportunity to settle the dispute prior to a hearing, it can save a lot of stress, time and money. Regardless of the strength or merits of your case there is no guarantee that an employment tribunal will find in your favour, while a settlement agreement provides a guaranteed outcome [6] cited 17.12.24

• An internet search will also give you an idea of other support and advice options that are available and could help to save on costs.

Is there anything else that can help to keep the cost down?

In anything that you do, preparation is key, and it is no different with an employment tribunal because preparing well can be cost effective. You should gather all relevant evidence, including documents, emails, and witness statements, as early as possible. It can be hugely beneficial because it can help to streamline the process and reduce the time and costs associated with preparing for the hearing. It can be daunting and worrying having to comply with all tribunal orders, but it is vital that you do so and that you meet set deadlines to avoid any additional costs or penalties.

Finally

As an individual making a claim to an employment tribunal it is imperative that you understand the costs that can be associated with doing so.

Even though there is not an up-front charge to make a claim, the potential costs of legal representation and other expenses can add up pretty quickly.

It is why it is prudent to explore all possible options to help with costs and to prepare thoroughly for a hearing, which can help you to manage costs.

It is often the case that when disputes first arise at work, dealing with them early and effectively, and doing so with skilled and expert support, can prevent the matter from escalating and reaching an employment tribunal. If you are at the start of a dispute with your employer or being subjected to any type of unfair work-related treatment you should contact our Employee Support Centre or call us today for a free initial consultation on 0333 772 0611.