The Claimant brought a claim for breach of contract, contending that there was a binding oral contract between her and her employer under which it had been agreed that her employment would end and her employer would pay her £40,000. The ET dismissed the claim, holding the parties had not made a binding, complete contract. Subsequently the ET made an order that the Claimant paid £10,100 towards the Respondent’s costs because of some procedural applications made by her representative which stood no reasonable prospects of success. The Claimant appealed against both judgments.

The EAT dismissed the breach of contract appeal but allowed the costs appeal. The EJ had considered that, owing to the statutory background known to both parties, they understood that a final, binding agreement would not take place unless and until the agreement was reduced to writing and the Claimant received legal advice upon it in accordance with s.203 of the 1996 Act. In terms of the costs order, the EJ was entitled to make such an order but had erred in its decision as to the amount of costs.