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Wednesday, July 09, 2025
What is the difference between a strike out and a deposit order?
Although both can be used to remove parts of your case, they work very differently
Strike out: the “red card”
A strike out (under Rule 38) ends all or part of your case immediately—with no hearing on that issue. It’s only used where a claim has no reasonable prospect of success, abuses the process, breaches orders, isn’t pursued, or prevents a fair hearing.
Deposit order: the “yellow card”
A deposit order (under Rule 40) lets your case proceed—but only if you pay up to £1,000. It’s only used where a part of your claim has little reasonable prospect of success—a lower test than strike out.
If you do not pay the deposit then the claim or point it was made against is dismissed, and you cannot run it at final hearing.
If you succeed on the claim/point that the deposit order was made against, you will get the money back. However, if youlose that claim or point, you lose the deposit and, for the purposes of any costs award, you are presumed to have been acting unreasonably.
Chronology of a claim
Disclaimer: Please note, none of the answers on this page or connected pages are legal advice, and whilst reasonable steps are taken to ensure its accuracy at the time of publication, the law changes regularly
🧭 Navigating your Claim
⏳ Chronology of a Claim
Click the button below to view the resources relevant to the stage your claim is at, and what is ahead of you!
Try to settle the dispute without starting a claim.
Not able to resolve your issue? Then set out your complaint by completing the ET1 and respond with an ET3
Once the claim has started get the roadmap for your case at a Case Management Hearing ("CMH").
The CMH may identify specific issues to resolve before a Final Hearing, like strike-out or employment status.
You will be ordered to exchange all relevant documents with the other side.
You will need to write a detailed account of your evidence before the Final Hearing and possibly any Preliminary Hearing, and send it to the other side.
This is when your case is decided by the tribunal.
If you win, this stage decides compensation or reinstatement
You may be able to challenge the outcome — but only on limited grounds.
🎥 Other Resources
📚 Free Guide 📘
Click here for my free tribunal guide.
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