The general rule is that each party is responsible for paying its own legal costs regardless of the outcome. However, there are exceptions to this, and Employment Tribunals do have the power to make costs awards if they feel that a party or their representative, has acted vexatiously, abusively, disruptively, or otherwise unreasonably in the bringing or conducting of the proceedings or a part of them. A costs award may also be made if any claim made in the proceedings by a party had no reasonable prospect of success.
A good employment lawyer will be able to advise you as to the timing and content of an appropriate ‘costs warning letter’ to the Claimant with a view to maximising your chances of a costs award at the conclusion of the case