Previously in employment cases, the question of whether or not costs should be awarded against a claimant was discretionary, but in the case of Daleside Nursing Home Ltd v Mrs Cinlet Mathew, the tribunal ruled the claimant should pay the legal fees.
Ex-employee Mathew filed an allegation against her former manager, claiming he had made racist and discriminatory remarks towards her. A Liverpool Employment Tribunal rejected the claims.
But Daleside Nursing Home's solicitor, Beech Jones de Lloyd, appealed for Mathew to pay the legal fees incurred on the grounds that her claims were "unreasonable and fabricated".
The Employment Appeal Tribunal in London overturned the original decision and the legal costs to be awarded in favour of Daleside Nursing Home are to be decided at a later date.
Paul Dumbleton, senior partner at Beech Jones de Lloyd said, "I am delighted with the outcome of this case.
"There are very few reported cases involving legal cost issues in situations such as this and it is very rare indeed for the Employment Appeal Tribunal to intervene.
"This is a monumental result and a case which can and will be referred to by many other employers when similar cases are brought against them."
Staff who fabricate claims against their employer must pay legal costs, Tribunal rules
Disgruntled employees could be put off filing false claims after an Employment Appeal Tribunal ruled staff who fabricate allegations against their employers should be ordered to pay the legal costs.
