Employment Law Costs Information

The cost of legal representation in an employment law case is directly related to the complexity of the case. The more complex the issues involved, the higher the costs are likely to be. However; in an effort to help you understand the likely costs you may incur, we set out here some basic examples of case scenarios as well as details of how we charge for this work.

The average range of costs for each stage of work is only an estimate and we cannot guarantee that actual costs to you in performing this work until we have gathered a detailed awareness of your matter. This is usually obtained at the initial consultation. For an initial consultation we charge £100 plus 20% VAT (so £120) and these meetings usually last an hour. At the consultation meeting, in addition to gathering the relevant information from you, we will normally be able to answer most of your questions too. After we know more about your matter, we will provide you a more detailed estimate of costs you can expect to pay.

For example, the fees for an unfair/wrongful dismissal claim will be lower, than a similar claim that also includes discrimination. The reason being that the second type of case will involve more hours spent preparing the case for trial and, more time for the trial itself.

Sometime there may be other funding options available to clients such as cover under an insurance policy. We will explore this at the consultation appointment.

The Key Stages in an Employment Claim

Generally speaking once instructions are obtained it is necessary to draft a pre-action protocol letter, sent to the employer, setting out the basis of the proposed claim and offering them an opportunity to settle this without proceeding to the Employment Tribunal. If the matter does not settle there, a claim form outlining the client’s case and nature of dispute will be drafted. The employer then has a fixed time in which to provide a response to the claim.

The claim form normally sets out details of fact in relation to the claim and the legal basis for it.

During the course of the claim, various directions & orders will be made by the Employment Tribunal and if you do not comply with a direction or order, you risk a strike out of part or all of your claim. The same rules apply whether you are bringing the claim or defending it.

From time to time the Tribunal may make a provisional decision during the course of the legal action, which sets out directions and deals with any preliminary points. These directions occur at a ‘Directions Hearing’. Attending these hearings and preparing for them also involves legal work.

Example of Reasonably Straightforward Employment Claim:

Generally speaking one would expect the approximate legal fees for a reasonably straightforward case of unfair/wrongful dismissal to be in the region of £3,000 to £5,000 plus VAT at 20%. This estimate does not include the final hearing.

This is not a quote for your particular matter. This is an average example only.

Factors that could make a simple case more complex, and therefore more costly, include the following events:

  1. If it becomes necessary to make or defend applications to amend claims
  2. Defending claims that are brought by litigants in person;
  3. Making or defending a costs application;
  4. Dealing with complex preliminary issues such as whether the Claimant is disabled (if this is not agreed by the parties);
  5. The number of witnesses and documents;
  6. If this is an automatic unfair dismissal claim example if you’re dismissed after blowing the whistle on your employer;
  7. Allegations of discrimination which are linked to dismissal.

Where appropriate, there will be additional charges for attending a tribunal hearing. These are usually charged at our hourly rate. For example, Cyrus Mansouri, the principal would charge £300 per hour plus VAT at 20% for this type of work. We have other experienced solicitors whose fees would be £200 per hour plus VAT at 20%. Often these hearings are held online or by telephone which will help to save fees as there will not be an additional fee for travelling to and from the Tribunal. If we have to attend a court or Tribunal, we charge for the time spent travelling. Sometimes we also may impose a charge for the travel fare, if the hearing is a long distance from our office.

A reasonably straightforward Employment claim, we would anticipate a final hearing to last one day depending on the case and in more complex cases the tribunal hearing can range from 2 to 5 days. The time spent in these hearings will be calculated at the hourly fee rate of the solicitor allocated to your matter.

The fees set out above cover all of the work in relation to the following key stages of the claim:

  • Taking initial instructions, reviewing papers and advising on merits and lack of compensation (this is likely to be revisited throughout the matter and subject to change);
  • preparing your claim or response;
  • reviewing and advising on the claim or response from the other party;
  • preparing or considering a schedule of loss or counter schedule of loss;
  • preparing for and attending Preliminary Hearing(s);
  • exchanging documents with the other party (disclosure);
  • agreeing a bundle of documents for use at the final hearing (and preparing that bundle if ordered to do so by the Tribunal);
  • taking witness statements, drafting statements and agreeing their content with witnesses;
  • reviewing and advising on the other party’s witness statements;
  • agreeing a list of issues, a chronology and/or cast list;
  • instructing the barrister for any interim hearings and the final hearing;
  • exploring settlement and negotiating a settlement throughout the process;
  • corresponding with the other side throughout the case on issues that arise;
  • attending the final hearing; and
  • reviewing and advising on the Tribunal’s judgment.
Disbursements

These are costs that are payable to third parties, such as court fees or barristers fees. We handle the payment of the disbursements on your behalf to ensure a smooth process. Currently there are no court fees payable to the Employment Tribunal. However; we may recommend that you are represented by a specialist Employment Law barrister, especially in more complex matters and those costs will be in addition to our own fees.

In cases where a specialist employment Barrister is instructed on your behalf, their fees will range between £1500 plus VAT of 20% to £7,500 plus VAT of 20% per day (depending on the experience of the advocate) for attending a Tribunal Hearing (including preparation). If the hearing is for an hour or half a day, the fee will reflect this and be lower.

Duration of the Work:

The time that it takes from taking your initial instructions to final resolution of your matter depends largely on the stage at which your case is resolved. If a settlement is reached during pre-claim conciliation, your case is likely to take 4 to 8 weeks.

If your claim proceeds to a Final Hearing your case is likely to take between 6 to 24 months. The speed usually depends on how long the final trial is likely to need. Cases that can be decided in a day will receive court dates much faster than those that need 5 days. We will be able to advise you of the expected time frame in your personal matter once we know more about it.

Bringing Employment Tribunal claims

Mansouri & Son regularly acts for senior executives bringing many different types of Employment Tribunal claim against their employer. Often, these will be combinations of claims within one legal action, for example, ‘ordinary’ unfair dismissal claims may be combined with claims for discrimination or being dismissed or subjected to detriment for whistleblowing. Typically, the more heads of claim that are needed, the higher the fees will be. The following examples relate to more complex cases that we deal with.

For wrongful dismissal

It is rare to bring a stand-alone claim for wrongful dismissal (i.e. a claim for notice monies) in the Employment Tribunal and given the current ceiling on compensation for this cause of action in the ET (£25,000) we would be very unlikely to do so. Higher value wrongful dismissal claims are typically brought in the civil courts where there is no ceiling applicable.

We occasionally add this head of claim to another cause of action in the Employment Tribunal, such as discrimination. Were we to bring a standalone wrongful dismissal claim with a hearing length of 1 day, this may cost in the region of £25,000 to £35,000 plus VAT at 20%, including disbursements. This example includes counsel’s fees.

Typical disbursements will include the fees for Counsel (£5,000 to £10,000 plus VAT at 20%), and incidental costs such as photocopying charges and couriers (£100 to £750 plus VAT).

For unfair dismissal

A standalone claim for ‘ordinary’ unfair dismissal (i.e. one not involving discrimination or whistleblowing) with a hearing length of 1 to 3 days may cost in the region of £40,000 to £90,000 plus VAT, including disbursements.

Typical disbursements will include the fees for Counsel (that is, a barrister to represent you at hearings: £10,000 to £25,000 plus VAT), and incidental costs such as photocopying charges and couriers (£100 to £750 plus VAT).

Defending Employment Tribunal claims

We also act for employers in their defence of many different types of Employment Tribunal claim. Often, these defences are a combination of claims within one legal action, such as for discrimination or detriments for whistleblowing. Typically, the more heads of claim that are included, the higher the fees & disbursements will be. As stated above, it is difficult to provide detailed pricing indications for separate causes of action without knowing the facts of the case, so the following are necessarily approximate guides for an employer defending a claim in the Employment Tribunal:

For wrongful dismissal

Defence of a standalone claim for wrongful dismissal may cost in the region of £15,000 to £30,000 plus VAT at 20%, including disbursements such as counsel’s fees. Standalone here means a claim involving a single issue.

Typical disbursements will include the fees of counsel (£5,000 to £10,000 plus VAT), and incidental costs such as photocopying charges and couriers (£100 to £750 plus VAT).

For unfair dismissal

Defending a standalone claim for ‘ordinary’ unfair dismissal (i.e. one not involving discrimination or whistleblowing) may cost in the region of £25,000 to £60,000 plus VAT at 20%, including disbursements such as counsel’s fees. Standalone here means a claim involving a single issue.

Typical disbursements will include the fees for Counsel (£10,000 to £25,000 plus VAT), and incidental costs such as photocopying charges and couriers (£100 to £750 plus VAT).

The costs ranges are wide. That is because not every case is the same.

Who will have conduct of my case?

All of our work is led by a senior solicitor, usually Cyrus Mansouri. This is particularly essential in litigation. Litigation is a complex area of the law and in addition to the facts and circumstances, legal technicalities play a big role in how cases get decided.

Cyrus Mansouri, the principal of this firm, will have overall conduct of your matter and supervise the work of the other lawyers working on the case. Each of our solicitors have many years’ of experience representing clients in Employment Tribunal claims.

We will discuss which of our lawyers will be allocated to work on your case at the initial meeting. We will discuss with you at the start which of our team of lawyers is best placed to represent you and the role of each team member. Your individual lawyer will be supported, usually by a secretary or personal assistant, as well as your own dedicated barrister. There are a wide choice of specialist Employment Law barristers but we tend to work with the very best sets of Chambers. Your choice of barrister will be yours to make, but we will help to introduce names of individuals to you with whom we have previously worked and whom we consider to be among the very best legal talent.  

The following are examples of hourly rates that you can expect to be charged – added to the hourly rates will be VAT currently at 20% and any disbursements such as barrister’s fees:

NameHourly rate
Principal Solicitor£350
Senior Solicitors£300
Senior Consultants£250
Solicitors£250
Consultants£250 – £275
Trainee Solicitors£200
Paralegals£150 – £200
Media Researchers£150
Translators£65 – £85

To discuss your requirements – please contact us or email us

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