Receiving a costs warning letter from the Respondent in your employment tribunal claim can feel intimidating. It’s often worded in a way that suggests you could be personally liable for thousands of pounds in legal fees. But before you panic—here’s what you need to know.

1. A Costs Warning Is Not the Same as a Costs Order

Just because you’ve received a letter threatening costs, doesn’t mean you’ll have to pay anything. Employment Tribunals are generally no-cost jurisdictions—meaning each side usually bears their own legal fees, win or lose.

Tribunals only award costs in limited circumstances, such as:

• Bringing or conducting a claim unreasonably

• Pursuing a claim with no reasonable prospects

• Acting abusively or disrupting proceeding

If you’ve acted reasonably and your claim has some merit, you’re unlikely to face a costs order—even if you lose.

2. Don’t Be Intimidated into Withdrawing Your Case

Respondents sometimes use costs warnings tactically to pressure claimants into backing down. The aim is to make you doubt your case or fear financial ruin.

Tactic: Take a breath. Don’t rush into withdrawing your claim based on a threatening letter. These warnings are often speculative and rarely enforced.

3. Check How You’ve Been Conducting Your Case

Costs warnings carry more weight if you’ve failed to follow tribunal orders, missed deadlines, or submitted claims that are clearly out of time or without legal basis.

Ask yourself:

• Have I met the tribunal’s directions?

• Is my claim arguable on the facts?

• Have I communicated respectfully and professionally?

If the answer is yes, then this letter may just be a bluff.

4. Get Legal Advice Immediately

This is where legal advice can make or break your case. A solicitor can:

• Assess whether the threat of costs has any real basis

• Help you frame a sensible and assertive response

• Support you in managing the case going forward to avoid any real costs risks

Tactic: Don’t igno3re the letter—but don’t overreact to it either. A solicitor can help you stay calm, focused, and protected.

Final Word: Don’t Let a Costs Warning Derail You

If you’ve received a costs warning, it’s a sign the other side sees risk in your claim—and they’re trying to unsettle you. That’s where having a solicitor by your side helps you stay on track and make informed decisions.

Need urgent help with a costs warning? I offer fast, confidential advice on how to respond—and how to strengthen your case moving forward. Weekend consultations available if your hearing is coming up soon. I am available on 07894219314 or during weekdays on 020 8858 5996.