Myth or fact: if you win your employment claim, will the other side pay your legal costs?
Published on 19/08/2025
Pritha Chowdoery from ARAG Law discusses:
When someone is bringing or defending an employment claim, one of the first questions they often ask is:
“If I win, will the other side have to pay my legal costs?”
It’s an understandable assumption, but Employment Tribunal costs rarely work that way, which is not what people expect.
The general rule: you pay your own costs
In England and Wales, Employment Tribunals operate differently to most courts. The starting point is that each party pays their own legal costs, regardless of who wins or loses.
This approach helps protect access to justice, so individuals can bring genuine claims without the automatic risk of a large legal bill if they lose. It also means that success in the tribunal does not usually lead to legal fees being reimbursed.
Are there any situations where costs can be recovered?
Yes, but they are relatively rare.
A tribunal can order one party to pay the other’s costs in certain circumstances, most commonly where a party has behaved unreasonably during proceedings, for example by:
- Acting abusively, disruptively, or otherwise unreasonably
- Bringing or defending a claim that had no real prospect of success
- Failing to comply with tribunal orders or causing unnecessary delays
Even then, a costs order is not automatic. The tribunal will consider whether it is fair and appropriate in all the circumstances.
It’s not just about who wins
One of the biggest misconceptions is that costs follow the result. In Employment Tribunal claims, the focus is not simply on who wins or loses, but on how the case was conducted.
That means a party can lose a claim that was reasonably brought or defended and still avoid paying the other side’s costs. Equally, a party can win and still be responsible for covering their own legal fees.
Why this is important to know early on
Whether you are an employer or an employee, it’s important to approach an employment dispute with realistic expectations:
- Don’t assume legal costs will be recoverable
- Treat any potential costs recovery as a bonus rather than a guarantee
- Use early advice to assess risk, proportionality, evidence and settlement options
Understanding costs early can help you make more confident decisions about whether to pursue a claim, defend it, gather more evidence or explore settlement before costs become disproportionate.
Have you come across another employment law myth you’d like us to cover? Message us on LinkedIn with your question.
Disclaimer - all this information was correct at the time of publishing