Employment Tribunal Fees and Costs

In R (Unison) v Lord Chancellor [2017] UKSC 51, the Supreme Court held that the Employment Tribunal fee order introduced in 2013 was unlawful — it prevented workers from accessing justice and was therefore both unconstitutional and incompatible with EU law (as it then applied). The fees were immediately abolished and all fees collected under the 2013 scheme were refunded.

As of April 2025, there are no issue fees or hearing fees for bringing a claim in the Employment Tribunal or Employment Appeal Tribunal. Claimants do not need to pay to submit a claim form (ET1) or to have their case heard.

The government consulted in 2023–24 on introducing a modest £55 issue fee for ET1 claims (with a fee remission scheme for those on low incomes). The outcome of that consultation and any legislative implementation should be checked at GOV.UK before issuing a claim, as the position may change. Even if a fee is introduced, it is expected to be significantly lower than the 2013 fees and subject to remission for low-income claimants.

If fees are payable (whether because of a future reintroduction of ET fees or in related proceedings such as the Employment Appeal Tribunal), the Help with Fees scheme (previously known as fee remission) allows claimants on low incomes to pay reduced fees or no fees at all.

Applications for Help with Fees are made using Form EX160, available from HMCTS. The scheme is means-tested:

• If you are receiving certain benefits (Universal Credit, Income Support, income-based JSA, income-related ESA, Pension Credit), you may be entitled to full remission.
• If your monthly disposable income (income after housing costs and essential expenditure) is below a specified threshold, you may receive partial or full remission.
• Capital (savings) above a threshold can reduce your entitlement to remission.

If you are refused fee remission and believe you qualify, you can ask for a review. Incorrect refusal of fee remission should be challenged — the right of access to a tribunal to enforce employment rights is a fundamental right.

The Employment Tribunal can make a costs order requiring one party to pay some or all of the other party's legal costs. However, unlike most civil courts, costs do not automatically follow the outcome in the Employment Tribunal — the tribunal does not simply order the losing party to pay the winner's costs.

A costs order can only be made against a party where they have:

• Acted vexatiously, abusively, disruptively, or otherwise unreasonably in bringing or conducting proceedings
• Brought or conducted proceedings that had no reasonable prospect of success
• Failed to comply with a tribunal order or practice direction

In practice, costs orders are relatively uncommon in the Employment Tribunal. The threshold for unreasonable behaviour is high. However, this cuts both ways — employers as well as claimants can have costs orders made against them if they act unreasonably.

The maximum costs order that can be made without a detailed assessment by a costs judge is currently £20,000. For higher amounts, a detailed assessment of costs is required.

Preparation time orders (PTOs) are a variant of costs orders available against litigants in person (those representing themselves). Unlike a standard costs order, a PTO compensates for the time spent preparing for proceedings — rather than legal fees incurred. A PTO cannot be made in addition to a standard costs order; it is an alternative. The hourly rate for preparation time is currently fixed by the tribunal rules.

Deposit orders can be made at a preliminary hearing where the tribunal considers that a claim or a specific issue in a claim has little reasonable prospect of success. The tribunal can order the party to pay a deposit of up to £1,000 as a condition of continuing to pursue that part of the claim. If the party then loses on that issue, they may be ordered to pay the other party's costs in relation to it, and the deposit may be used to pay those costs.

Deposit orders are used to deter weak or speculative claims from proceeding to a full hearing. If you receive a deposit order and cannot afford the deposit, apply for Help with Fees or consider carefully whether to continue with that element of your claim. Seek advice from Acas or an employment law adviser.