Deposit orders in the employment tribunal
Deposit orders in the employment tribunal

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Deposit orders in the employment tribunal
  • When a deposit order may be made
  • The form of a deposit order, its amount and accompanying information
  • Consequences of failure to pay the deposit
  • Consequences when the issue for which the deposit was paid is decided

Where some or all of a claim or response has no reasonable prospect of success, the appropriate approach may be to strike it out: see Striking out and unless orders in employment tribunal proceedings—Striking out where there is no reasonable prospect of success.

Establishing that some or all of a claim or response has no reasonable prospect of success is a high hurdle; the test will not be passed where the prospects are merely doubtful or poor if there is still a realistic (albeit weak) possibility that the relevant party will succeed on the point(s) in question. Where the threshold for striking out cannot be reached, but some or all of the claim or response is nonetheless weak, a deposit order may be the appropriate tool instead.

A deposit order requires a party at a preliminary stage to put up a sum of money in order to be allowed to continue with the allegations or arguments in its claim or response which are thought to be doubtful. As such, a deposit order is a significant deterrent to the pursuit of a claim; if not paid, the effect of a deposit order will be the same as a strike out.

When a deposit order may be made

The time for consideration of whether or not a deposit order should be made is