A costly decision?

by Andy Osborne on

The usual rule in Employment Tribunal claims is that each party will bear their own costs in respect of the proceedings. However, in certain circumstances the Employment Tribunal can consider whether it may be appropriate to make a costs award against a party who has displayed unreasonable conduct.
In a recent Employment Appeals Tribunal case consideration was given to the failure to consider a reasonable settlement offer. In this case the former claimant was resisting the appeal in the EAT and had been offered an out of court settlement figure. This offer was originally rejected by the claimant but was then accepted at the last minute. At this stage further costs had been incurred by both sides.
The Tribunal confirmed that unreasonable conduct in respect of settlement offers can give rise to a justified costs award being made against the party concerned.
This Judgment highlights the importance of settlement negotiations and illustrates the careful consideration which must be given to offers when they are first proposed. Failure to give consideration to reasonable settlement offers, even if it means just making a reasonable counter-offer could impact upon whether a party has to bear some or all of the costs of the proceedings.
By employment law advisor, Ami Vallet

For legal reasons only registered users can add comments



The posts on this site, including but not limited to images, links and comments left by readers, are an individuals own and don't necessarily represent Stephensons Solicitors LLP's positions, strategies or opinions. The content of blogs held here should not be construed as legal advice. While all possible care is taken in the preparation of blogs, no responsibility for loss occasioned by any person acting or refraining from acting as a result of the material contained here can be accepted by Stephensons, the author, or the publisher. If you are in need of legal advice contact us on 0333 344 4772. All comments posted are unmoderated and have not been edited before publishing, however if you have any objections to a comment please contact marketing@stephensons.co.uk.

Register to add comments to Blog

Stephensons legal blog