What is a Deposit order in the Employment Tribunal?

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Employment tribunals are often reluctant to strike out cases at an early stage unless there is a compelling reason to do so. An alternative option for the Tribunal is to make a deposit order.

A deposit order is a sum of money (up to £1,000 per allegation or argument depending on the financial situation of the party who has been ordered to pay the deposit) that the Employment Tribunal may order a party to pay in certain circumstances (i.e., where such allegation or argument has “little reasonable prospect of success”), usually as a condition of continuing with the allegation or argument.

If the Employment Tribunal makes a deposit order, the amount ordered must be paid in accordance with the deposit order. If this is not done, the failing party may have the arguments/allegations to which the order relates stuck out and be at greater risk of costs.

If a deposit order is made, it is likely to discourage the party from pursuing the claim as it indicates that a Tribunal considers the argument or allegation to be without merit. The purpose of the deposit is to ensure that only arguments or allegations with a realistic prospect of success proceed to a full hearing.

Deposit orders can be made at any stage in the Employment Tribunal process, but are most commonly made at an early stage of proceedings.

If a party is required to pay a deposit, and loses the argument to which it relates, it could be seen that continuing with the argument was unreasonable and put that party at risk of costs. Further, the Tribunal may order that the deposit is paid to the other party.

If you have been asked to make a deposit order, or if you want to know how to request one, you should seek legal advice as soon as possible. Employment law is complex and you will need to understand the full implications of how t make an application for a deposit order.

Article by

Louise Maynard

0800 915 7777

Our expert employment law solicitors all have many years’ experience advising individuals who are in your position. We will be able to guide you through the process and to help you secure the best possible outcome.

We offer a range of services, so please contact our friendly customer services team to discuss further via hello@kilgannonlaw.co.uk or 0800 915 7777.

Disclaimer

The above provides a general overview relating to tribunals and is not intended nor construed as providing specific legal advice.

This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice.

26.08.23

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