consultation paper with the 1996 draft Employment Rights (Dispute Resolution) Bill
The consultation paper accompanying the original (1996) draft Employment Rights (Dispute Resolution) Bill contained a proposal to give Tribunals power to award costs against a party who has refused a reasonable settlement offer made by the other party.
Under the proposal, if an employer has made an offer of compensation at least as great as the amount eventually awarded by the Tribunal then the Tribunal will be able to make a costs award in favour of the employer. By the same token, if an employee had offered to settle a case for an amount which is the same or less than the amount eventually awarded to him, the Tribunal would be able to make a costs award in favour of the employee.
If this proposal is implemented it can be done by amendment of the tribunal rules of procedure under s.13 Employment Tribunals Act 1996.
For notes on the present position re costs awards in Tribunal proceedings see Employment tribunals/costs and expenses .