Compensation Claim Costs

If a client has been taken to court for an employment tribunal and lost the case, can he claim the expenses for the court and solicitor fees and also the payment made to the claimant? Advice appreciated on this one!!
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However I seem to remember, from when studying ATT, that there may a restriction if the trade is not carrying on.
Hope that is a starting point, maybe be worth looking at the manuals on HMRC website.
We cannot offset such penalties against profits but the award and legal fees are ordinary costs of business.
Mind you I cannot find anything in the HMRC manuals covering it.
would that be of any support for payrollpro's answer:
http://www.hmrc.gov.uk/manuals/bimmanual/BIM38525.htm