Deposit order

In a weak case, a judge can order a party to pay a deposit, not exceeding £1,000, within 21 days or else the claim will be struck out (dismissed). A tribunal considering a deposit order must consider a claimant’s ability to pay. Deposit orders must never be used to inhibit access to the tribunal. Only a nominal amount, say £1, should be ordered if the evidence shows that a claimant cannot pay (Hemdan v Ismail [2016] UKEAT 0021/16/1011).

A deposit order is a strong sign that a claim is likely to fail, so urgent legal advice should be taken before carrying on. Even if the sum ordered is nominal, its purpose is the same, namely to signal to a litigant that their case is weak and that they risk being ordered to pay the other side’s legal costs if they continue. A claimant who pursues a claim unreasonably after being warned by the tribunal that their case will probably fail is at a high risk of a costs order.

A tribunal must not make a deposit order just because a claimant’s case is unclear (Tree v South East Coastal Services Ambulance NHS Trust [2017] UKEAT/0043/17/LA).