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Amount of deposit order must be proportionate and affordable by the payer (News, 9 January 2017)

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Published on: 09 January 2017

Published by a LexisNexis Employment expert

Table of contents

Impact of this judgment
Background law
The facts and decision of the employment tribunal
The judgment of the EAT

Article summary

The amount of a deposit order that a tribunal orders a party to pay in order to proceed with an allegation must be such that the payer can afford to pay. It must not operate to restrict disproportionately the right to a fair trial. The object of a deposit order is not to make it difficult for a party to pursue a claim to a full hearing. A party without the means or ability to pay should not therefore be ordered to pay a sum he or she is unlikely to be able to raise. A proportionality exercise must be undertaken, ie any order made must be a proportionate and effective means of achieving its purpose (of signalling to the payer the assessment of little reasonable prospects of success and of being a warning as to costs). EAT: Hemdan v (1) Ishmail (2) Al-Megraby.

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