Claimant v Thomas Niamh Contracting Ltd — 2025

This judgment, issued on the papers by Employment Judge JM Wade on 7 July 2025, concerned only the respondent's application for costs after the claimant withdrew all his claims on 11 October 2024. The respondent sought £9,294.96 (inc VAT) in defence costs from 29 April to 17 July 2024, relying on a costs warning letter of 27 April 2024 that had identified weaknesses in the ERA and dependant's leave allegations, and a further £1,700 plus VAT in respect of a strike-out, unless and deposit application made on 2 October 2024.

The Tribunal accepted that the respondent's April 2024 costs warning letter was written in commendably open and measured terms and that the dependant's leave problems it identified were ultimately borne out. However, the Judge was satisfied from the financial information supplied that the claimant's finances were strained such that legal advice was not affordable, and that he had not acted unreasonably in placing trust in his partner, who represented him for free and acted diligently to the best of her ability. The Judge also took into account the claimant's PTSD, anxiety and depression.

On the second limb, the Judge found that the respondent was not put to additional expense by the failure to comply with case management orders, since the strike-out application would likely have been made in any event and the final hearing would have been postponed because the respondent's witnesses could not attend. Noting Parliament's intention that the Tribunal is generally a costs-free regime, the Judge concluded it would be contrary to the interests of justice to make a costs order against a household in strained financial circumstances. The application was dismissed.