In exceptional circumstances, we may consider entering into a Damages-Based Agreement with you. A Damages-Based Agreement is a type of Conditional Fee Arrangement. This is only applicable to those bringing the claim and not those defending a claim.
If we enter into this type of arrangement with you, our fees are determined as a percentage of the amount that you achieve if you win. A “win” would include any settlement reached or following any Employment Tribunal award. This percentage is usually 35% inclusive of VAT, although it is assessed on the circumstances of each matter.
The main advantages of entering into a damages based agreement are that together, we (solicitor and client) share the risk as well as the costs of a commercial claim. If the case is unsuccessful, you will only have to pay a small amount, if any, of solicitors’ fees. There are exceptions to this which are set out below.
You will always be required to pay any disbursements and expenses incurred (whether you are successful or not) and these will usually be required on account prior to the costs being incurred. The agreement is limited to pursuit of your claims. It does not cover:
- any claims or counterclaims brought against you;
- any appeal that either you or your employer may make including any appeal to the Employment Appeal Tribunal.
If we agree to act for you under a Damages Based Agreement, you would still be liable for all disbursements in respect of your claim including, but not limited to, Counsel’s fees. Disbursements are costs related to your matter that are payable to third parties, such as Counsel’s fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.
Counsel’s fees are estimated between £750 to £3,500 per day (plus VAT at the rate of 20%) (depending on experience of counsel) for attending a Tribunal Hearing (including preparation). If a hearing lasts for more than one day, the fee for preparation and the first day is usually higher than the fee for subsequent days.
If you breach the agreement, you would be required to pay our fees calculated on the basis of the relevant hourly rate.
Breaching the agreement can include not acting in accordance with our advice, being untruthful in your representation of your claim to us or failing to provide in advance any payment required in respect of any disbursements which may be incurred. This is not exhaustive and we would provide further information prior to entering into this type of agreement. If you terminate the agreement prior to conclusion of the matter or become incapable of continuing with the matter, you would be required to pay our fees calculated on the basis of the relevant hourly rate.
If you believe you have a strong case and want us to provide you with legal assistance under a damages based agreement, please contact us for more information.
Tribunal Fees
There are currently no tribunal fees for pursuing an Employment Tribunal claim.