Judges overseeing employee tribunals have been warned to award costs against people who make false or frivolous claims.
According to Personnel Today, the move by the Employment Appeal Tribunal (EAT) has been welcomed by HR bosses, who have previously campaigned for staff members to pay their employer's costs if they lose a case at tribunal.
The move follows a request made by EAT to an employment tribunal last month to award up to £25,000 of costs against a woman who lied about suffering racial discrimination from her manager at the nursing home where she worked.
Warwick Business School industrial relations professor Linda Dickens told the publication that the ruling will likely be applauded by employers.
"This case will reassure employers as it shows there is a penalty - and a significant one at that - for those bringing false cases," she said.
Earlier last month, Personnel Today also reported that new tough measures have been promised by justice secretary Jack Straw to force employers to pay the damages awarded by employment tribunals or in settlements made out of court.