The British Red Cross has abandoned attempts to recover £10,000 in costs from a former staff member who took it to an employment tribunal.
Last year, a tribunal in Stratford, east London, rejected Jackie Rutherford's claims that she was unfairly dismissed and suffered race, age and disability discrimination.
Martyn Dicker, the charity's human resources manager for the south east, said afterwards that it had "a responsibility to our beneficiaries" to recoup costs.
But the charity changed its mind after the written judgement from the tribunal last month cited breaches of procedure by the organisation in Rutherford's dismissal.
"We feel it would be best to focus our energies on delivering vital services to vulnerable people in crisis, rather than spend any more time and money on this matter," Dicker said last week.
Rutherford said she was glad the matter was over.