The general rule is that employment tribunals do not award costs or, in Scotland, expenses. The parties therefore have to meet their own costs of bringing or defending the claim. However, the tribunal can in some limited circumstances order one party to pay the other party's costs, including time spent by parties who are not legally represented in preparing their case.
The tribunal has the power to award costs if it considers that the party has acted 'vexatiously, abusively, disruptively or otherwise unreasonably' in bringing or conducting the case. The tribunal can also award costs if it considers that the bringing or conducting of the case was misconceived, which includes where the claim or response had no reasonable prospect of success.
Costs can be awarded against a party if the party's representative has acted unreasonably in conducting the case. The tribunal can also order a party's representative to pay costs if he or she has acted improperly, unreasonably or negligently, but only if the representative was acting in pursuit of profit in representing the party.
The tribunal office will pay out-of-pocket expenses to those attending hearings as witnesses or parties. This covers travel and accommodation expenses and loss of earnings, up to certain limits. The tribunal system will also meet the cost of professional interpreters and fees for medical reports in some circumstances.