Workers are often threatened by employers with crippling costs when bringing their claims at tribunal. This is intended to blackmail them to dropping their claims.
The Employment Appeal Tribunal has awarded costs against an employer as a warning to stop this unfair practise.
The Employment Appeal Tribunal has awarded costs against an employer as a warning to stop this unfair practise.
Employers, or ex employers who threaten workers taking claims against them with costs actions, are in danger of having to pay costs to the worker, according to the Employment Appeal Tribunal in a case that has just been decided. And quite right too. Workrep has called for the total abolition of costs at tribunal. It is estimated that up to 50% of claims at tribunal initiated by unrepresented Workers, are subsequently dropped, when their former employers hire their local legal hit men to send out their threatening letters.
As costs on failure at tribunal can now potentially reach £10,000 WorkRep (a charity representing workers and employees at tribunal) believes it is easy to understand why a worker will abandon his case, no matter how good it is, whether it is about discrimination or harassment or unfair dismissal etc.
If a worker has been made redundant, she/he can always look for a new job, and pick up the pieces. If an employee thinks he/she might be hit with a £10,000 bill for a lost tribunal case, the potential devastation that could be caused is just to much for a worker often on the minimum wage, to take.
In reality, costs awarded by tribunals average £1,000, and are only awarded in rare circumstances, if there has been something unreasonable in the conduct of, or bringing of a case.
WorkRep applauds the EAT for this new costs decision. Employers are now going to have to be more careful when threatening workers, as the money for costs could end up in the worker’s pockets.
If you are running your own tribunal case and are threatened with costs by your employer, you should keep note of any such harassment. It comes usually in the form of threatening correspondence, and use it as evidence to request a Preparation Time Order once you have won your case. More information on this is to be found on the WorkRep website.
The Employment Tribunal was originally intended to enable any worker to plead his own case, without having need for legal knowledge. That was never the case, and even less so nowadays.
Don't be bullied by your employer or ex-employer. No matter what sort of case you are bringing, whether of discrimination, unfair or wrongful dismissal, of harrassment or victimisation etc, you have rights. Do not be frightened out of using those rights. The threats can usually not be backed up, and can now be used against the perpetrators.
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