On 6 May 2026, the Tribunal Procedure Committee (TPC) launched a consultation on potential reforms to costs rules across the First-tier Tribunal, Upper Tribunal and employment tribunals. The proposals are intended to promote greater consistency between tribunals and focus, in particular, on payments on account of costs and pro bono costs orders.

Payments on Account of Costs

At present, employment tribunals have authority to make costs orders under Part 13 of the Employment Tribunal Procedure Rules 2024, however they do not have specific legal authority to order a payment on account of costs before a detailed assessment has taken place.

The TPC is proposing to address this gap by permitting employment tribunals to require the paying party to make a reasonable payment on account, where a costs order has been made and where a detailed assessment is to follow, in advance of that assessment being concluded. In line with other tribunals, employment tribunals would be required to take the approach that best achieves justice in each case.

Pro Bono Costs Orders

Employment tribunals already possess the power to make pro bono costs orders, as outlined by Section 194A of the Legal Services Act 2007 (LSA 2007). The TPC proposes incorporating a short permissive rule in the Employment Tribunal Procedure Rules 2024 to make express reference to this existing Tribunal power. The TPC is also consulting on whether employment tribunals should take additional factors into account when deciding whether to make a pro bono costs order and on what terms, its preliminary view being there are no other required matters.

Interest on Costs

No proposals are made regarding interest on costs in employment tribunals because that power remains with the government not the TPC. However, the consultation notes that the government is sympathetic to aligning the approach between the employment tribunal and other tribunals on the issue of interest on costs and will consider the outcome of the consultation.

Conclusion

The proposed amendments represent a potentially significant development in the employment tribunal costs regime as the consultation reflects efforts to improve consistency across tribunal jurisdictions.

Angela Nako is  a Paralegal in the Costs and Litigation Funding Department at Clarion Solicitors. You can contact the team at civilandcommercialcosts@clarionsolicitors.com