Funding

Before embarking upon an employment claim, it is very important to balance the prospects of success and the value of the claim against the potential legal costs of having to take the case all the way to court or tribunal.

Different rules apply as between employment tribunals and the ordinary courts as to who pays the winning party's costs.

Employment Tribunals

The general rule in the employment tribunal is that each party bears its own costs, regardless of who wins. It is therefore quite possible for an individual to win in tribunal and still end up out of pocket after legal costs have been paid.

Legal expense insurance may be available as part of a home and contents insurance policy. Check the terms of any such policy you may have very carefully. Cover is often extended to all family members living under the same roof. You must ensure that any potential claim is reported as soon as possible as delays may lead to a refusal of cover.

County and High Court

In the ordinary courts, the general rule is that, for claims above £5,000, the losing party pays all or part of the winning party's costs. Thus, the claimant runs the risk that if they lose, they could be liable both for their own solicitor's costs and those of the former employer.

Conditional fee agreements (also known as 'no win no fee' agreements) and after-the-event insurance may be available for these cases.