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Company secures ‘substantial’ costs after winning tribunal case against four staff

Global business outsourcing firm MSX International (MSXI) has recovered substantial costs following an employment tribunal claim.

The case involved four former employees who all claimed their dismissals on grounds of redundancy were unfair.

A variety of other claims were also made, including claims for age discrimination (all four employees were aged over 55). Following a 10-day tribunal hearing in january this year, MSXI won on all grounds, but this left the company with a six-figure legal bill.

The company's employment lawyer, East Anglia-based Prettys, advised MSXI to make a costs application against the four claimants, which resulted in a substantial negotiated settlement of £65,000.

Kelly Sayers (pictured), partner and head of employment services at Prettys, said: "Companies largely steer clear of making costs applications following a tribunal hearing. However, there are situations where this course of action is appropriate and this was one of them. In light of the proposed reforms to the employment tribunal process, it is likely that tribunal judges will be placing more focus on making costs awards in the future.

"It is our view that a well-prepared case and an aggressive and well-argued costs application were key to MSXI successfully obtaining such a high settlement. Genuine engagement with the claimants regarding settlement and detailed narratives of all the work done (so that the costs the client had incurred were transparent to the claimants) also contributed to the positive outcome of this case. In addition, MSXI had a decisive victory at the full merits hearing as a result of good witnesses who had spent time on their preparation."