ACAS Employment Tribunal Costs: Who Pays, Typical Fees & How to Reduce Costs

Key Takeaways

1. ACAS employment tribunal costs vary depending on claim complexity, legal representation, and whether you settle early or reach a hearing.
2. Each party typically pays their own legal fees, but a costs order can compel one side to pay the other’s costs in cases of unreasonable conduct.
3. There is no upfront tribunal application fee for employees, but unrecovered expenses such as legal fees and witness costs can add up quickly.
4. Costs orders mean you could be liable for the other side’s costs if you bring a weak claim or act unreasonably during proceedings.
5. Using ACAS Early Conciliation is an effective way to resolve disputes and significantly reduce legal costs and stress for both sides.
6. Missing or misunderstanding the process increases risk of financial loss, wasted effort, or being unexpectedly ordered to pay extra costs.
7. Fee remission support and discounted legal help are available, so check eligibility as soon as a dispute arises.
8. Go-Legal AI offers trusted templates, automated tools, and expert guidance to keep your claim on track and minimise costs.
9. Go-Legal AI is rated Excellent on Trustpilot with over 170 five-star reviews.

How Much Will an ACAS Employment Tribunal Cost and Who Pays?

Facing a workplace dispute? Worrying about legal bills and tribunal costs is common—especially if you’re unsure who pays, what to budget for, or how to limit your risk.

The true cost of an employment tribunal is more than just solicitor fees; it can include everything from lost work time to expenses for witnesses and documents. Surprising the other side with a costs order is rare but possible if a claim is particularly weak or conduct is unreasonable.

This guide offers a clear breakdown for business owners and employees: the typical expenses you can expect, how costs are split, and how best to avoid common financial mistakes. By following best practice, and using automation tools like Go-Legal AI, you can steer your tribunal journey with confidence and keep unnecessary costs at bay.

What Are ACAS Employment Tribunal Costs and Who Has to Pay?

ACAS employment tribunal costs are the real-world expenses both employers and employees face when resolving workplace disputes at an employment tribunal in England and Wales. These extend beyond legal representation to include witness expenses, preparation time, and sometimes compensation if you lose a claim.

In most employment tribunals, each side pays its own costs, regardless of outcome. This contrasts with civil court, where the winner usually recovers their legal costs. A tribunal will only make a “costs order”—compelling one side to pay the other’s costs—if there’s unreasonable behaviour, a wholly unfounded claim, or blatant disregard for tribunal rules.

Typical Employment Tribunal Costs for Employees and Employers

Legal costs in employment tribunals vary depending on how you prepare your case and what professional help you use. Here’s a breakdown showing what each party can expect:

• Legal Representation: Solicitor and/or barrister fees for advice, document preparation, management, and advocacy.
• Preparation Time: Gathering evidence, preparing witness statements, and assembling documentation.
• Hearing Costs: Loss of earnings, travel, accommodation, and subsistence for attending hearings.
• Expert Reports: Especially common in discrimination or medical claims.
• Settlement Costs: Legal costs for reviewing or drafting settlement agreements.

How Much Does ACAS Early Conciliation Cost and How Can It Save You Money?

ACAS Early Conciliation is a free, confidential service aimed at resolving disputes before they reach tribunal. Both parties can suggest a settlement with the help of an independent ACAS conciliator, and there are no service charges.

Using Early Conciliation can substantially reduce stress and legal costs. Settling here means you dodge solicitor fees, witness expenses, and lost working days associated with a tribunal.

What Fees and Expenses Should I Expect During a Tribunal Claim?

While there are no filing fees for an employment tribunal claim, real costs arise as proceedings continue. Key expenses can include:

1. Legal Fees: Solicitor or barrister charges for all aspects of preparing and presenting your case.
2. Preparation Costs: Photocopying, binding, and courier charges related to hearing bundles.
3. Travel and Accommodation: Expenses for you and your witnesses if hearings are held in person.
4. Disbursements: Payments for expert evidence, medical records, or interpreters.
5. Witness Expenses: Out-of-pocket costs for witnesses, sometimes recoverable at the tribunal’s discretion.
6. Settlement Costs: Fees for negotiating and drafting settlement agreements, even if you settle early.

Steps to Minimise Employment Tribunal Legal Fees

Cutting down on unnecessary costs begins with practical planning and smart choices:

1. Gather documents, evidence, and details about all witnesses as soon as an issue surfaces.
2. Make full use of ACAS Early Conciliation to resolve matters quickly and avoid filing a tribunal claim.
3. Evaluate choices, from self-representation, using a union, or instructing legal experts—each affects cost.
4. Only pursue claims or defences with solid evidence and a strong legal foundation.
5. Stay open to settlement if it makes commercial sense, especially via COT3 ACAS agreements.
6. Fix a maximum fee or staged payments with solicitors to avoid runaway legal bills.

What Is a Costs Order and When Might You Be Ordered to Pay?

Although rare, a tribunal can issue a ‘costs order’ if a party or their representative has:

• Acted unreasonably, vexatiously, or disruptively.
• Brought or defended a claim that is clearly hopeless or without merit.
• Ignored direct tribunal instructions, causing extra costs for the other side.

Tribunals use this power with caution, focusing on truly exceptional or bad faith conduct.

Employment Tribunal Checklist: Common Costs and Expenses

Tribunal Cost Timeline: What to Expect at Each Stage

The total cost of an employment tribunal depends on the complexity of your case, the number of witnesses, and whether you resolve the dispute early. Here’s a practical timeline:

For peace of mind and professional-quality tribunal documents, use our guided templates to cover every detail and prevent costly errors.

How to Get Help with Employment Tribunal Costs

Employment tribunal claims no longer require a fee to submit for either party—the Government removed these charges in 2017. However, there are ways to reduce or even eliminate legal costs:

• Trade Unions: Many provide free advice and legal representation for members in workplace disputes.
• Legal Expenses Insurance: Some home, car, or business insurance policies include cover for employment claims. Check your policy details.
• No Win, No Fee: Sometimes available for strong claims; always review the terms.
• Free Advice Centres: Citizens Advice, law centres, and pro bono clinics offer varying levels of support.
• Fee Remission: While tribunal fees are gone, cost support for related court actions (such as enforcement) is still available where hardship can be shown.

Essential Mistakes to Avoid with Tribunal Costs

How Go-Legal AI Streamlines Tribunal Costs and Preparation

Go-Legal AI makes preparing for your employment tribunal simple, accurate, and cost-effective. With our intuitive suite of legal tools, you stay in control of both your paperwork and your budget:

• AI-Powered Document Builder: Prepare ET1 claim forms, tribunal responses, bundles, and witness statements with clear guidance. No missed details.
• Lawyer-Verified Templates: Ensure every document is drafted to the standards required in UK employment law.
• Risk Checker: Flag weak arguments or missing information before submission, reducing the chance of errors and wasted expense.
• Cost Tracker: Stay on budget by monitoring your legal spend and upcoming expenses, all in one place.

Worried about missing a vital step or overspending? Our legal tech ensures you avoid the classic pitfalls and progress with total confidence.

Frequently Asked Questions

Who pays the legal fees in an employment tribunal claim?

Each party usually pays their own legal costs, win or lose, unless the tribunal issues a special costs order for serious misconduct or unreasonable behaviour.

Can the losing party ever be made to pay all costs?

Yes, but only in exceptional cases—for example, bringing a clearly hopeless or abusive claim, or acting unreasonably. The tribunal rarely exercises this power.

Are there hidden costs with employment tribunal cases?

Yes. Expenses for witnesses, experts, time off work, or preparing documents can add up quickly and are often overlooked at the start.

How can I keep witness expenses down?

Call local witnesses and arrange for remote video evidence where permitted. Always agree expense terms in writing so everyone is clear from the start.

What support is available for funding a claim?

You may qualify for help from your union, Citizens Advice, a law centre, or via a legal expenses insurance policy. Legal aid is limited and only available in rare circumstances.

What’s the difference between tribunal fees and legal fees?

Tribunal fees (for filing claims) have been abolished since 2017. Legal fees are paid to solicitors or barristers for their professional advice and representation.

When should settlement be considered?

From the earliest opportunity—often during ACAS Early Conciliation or even before. Early settlement usually keeps overall costs lowest.

Are employment tribunal costs higher for discrimination cases?

Typically, yes. These claims are more complex, often involve multiple witnesses and expert evidence, and take longer to resolve, especially for employers.

What if I cannot pay a tribunal award?

If you can’t pay compensation or costs ordered, you may ask for a payment plan or, as a last resort, bankruptcy or insolvency options can be explored. Take urgent financial guidance.

How should I budget for tribunal legal costs?

Start with early estimates from your representative, keep all receipts, and agree on fixed or capped fees. Use our cost planner to track every stage efficiently.

Create Your Employment Tribunal Documents with Go-Legal AI

Our platform gives you access to AI-powered templates, expert checklists, and cost calculators, so you can draft claims, defence responses, and settlement agreements with total confidence. Every step is structured for business owners and employees, meaning you avoid classic pitfalls and make your case as strong as possible—while always keeping costs under control.

Take Control of Your ACAS Employment Tribunal Costs Today

Understanding employment tribunal costs in England and Wales is essential—whether you’re filing a claim or defending one. Relying on generic documents or entering the process unprepared can result in costly errors, damaged reputations, or lost opportunities for settlement.

Go-Legal AI’s tools let you create compliant tribunal documents, keep expenses predictable, and avoid the classic mistakes that derail even experienced parties. Our platform is designed to help you build a robust case and manage every stage with clarity—all while protecting your time and finances.

Ready to take the guesswork out of tribunal preparation? Sign up for free today and experience the simple way to manage employment disputes, reduce costs, and maximise your prospects of success.