Employment Law Costs
– Unfair and Wrongful Dismissal
At O’Donnell Solicitors we understand that when a dispute arises, our clients want an understanding of the potential costs in pursuing that dispute from the outset. Employment law by its very nature can be unpredictable and there are various factors throughout any litigation which can affect the time and ultimately the costs incurred.
The following information details our charges for the provision of advice and representation to employers and employees in relation to the bringing/defending of claims before the Employment Tribunal for unfair dismissal or wrongful dismissal.
Hourly Rates
In Employment law, our fees are calculated by reference to the hourly rates set out below and are based on the time we spend dealing with your case.
| Solicitor | Rate (per hour) |
|---|---|
| Grade A: Directors, Solicitors and Legal Executives with over 8 years’ experience | £250.00 plus VAT |
| Grade B: Solicitors and Legal Executives with over 4 years’ experience | £225.00 plus VAT |
| Grade C: Other Solicitors, Legal Executives and staff of equivalent experience | £200.00 plus VAT |
| Grade D: Trainee Solicitors, Paralegals and other staff of equivalent experience | £150.00 plus VAT |
The hourly rate includes advising, attending on you and others, dealing with papers, correspondence (including emails), telephone calls, travelling and waiting time. All routine letters sent out by us and all routine telephone calls made and received will be charged at one tenth of the hourly rate. All routine letters received will be charged at the rate of one tenth of the hourly rate. All non-routine work shall be charged at the hourly rate according to the amount of time spent.
The Employment Department consists of Kenneth Lees (Head of Department, Associate Solicitor) who is supervised by Richard Dobson-Mason (Director) and Rebecca O’Donnell (Managing Director). Details of their experience and qualifications can be found on the Our Team page of our website. At the outset of your matter you will be assigned a solicitor and will be advised of their hourly rate.
VAT is charged at the prevailing rate (currently 20%) on the hourly rates and any disbursements or expenses that are incurred.
Disbursements
In the event that disbursements are payable in your matter (such as counsel fees, expert witness fees, or document disclosure fees) these will be payable separately and in addition to the hourly rates detailed above.
Currently there are no fees payable to the Employment Tribunal to issue a claim or defend a claim for either an employee or employer.
If the claim requires the instruction of a conference with counsel, counsel’s fee may be between £1,000 and £1,500 plus VAT.
Representation by counsel at a one-day hearing will usually attract a fee of £1,500 to £3,000 plus VAT, and a three day hearing will likely attract charges of £3,500 plus VAT for day one plus £1,000 to £1,500 plus VAT each for days two and three.
The above disbursement types and figures are indicative and are likely to change on a case-by-case basis. Quotations for disbursements will be obtained and given to clients for approval. We will not incur any disbursements without client approval.
VAT is charged at the prevailing rate (currently 20%) on the hourly rates and any disbursements or expenses that are incurred.
Services
It is difficult to estimate how many hours will be required until full details of the matter have been disclosed, and even at that stage there are various factors which can make an estimate difficult.
Representation in an unfair dismissal claim from initial instructions up to and including a final hearing may cost between £10,000 and £20,000 plus VAT. Disbursements and expenses are payable in addition to our fees. The following is an indicative list of the main stages of an unfair dismissal claim and the number of hours work that is generally required to complete each stage:
| Action | Estimated Time | Cost |
|---|---|---|
| Taking your instructions, reviewing paperwork, preparing advice on prospects of success and quantum | 3 to 5 hours | £750-£1250 plus VAT |
| Pre-claim conciliation | 1 to 2 hours | £250-£500 plus VAT |
| Preparing and filing claim or response to the Employment Tribunal | 8 to 10 hours | £2000-£2500 plus VAT |
| Reviewing and advising on claim or response from the opponent | 1 to 2 hours | £250-£500 plus VAT |
| Drafting list of issues and agenda for a preliminary hearing | 3 to 4 hours | £750-£1000 plus VAT |
| Representation at a preliminary hearing | 2 to 4 hours | £500-£1000 plus VAT |
| Drafting statement of loss/counter statement of loss | 2 to 3 hours | £500-£750 plus VAT |
| Gathering disclosure, exchanging documents, creating agreed bundle of documents | 4 to 8 hours | £1000-£2000 plus VAT |
| Assisting with the preparation of witness statements | 4 to 16 hours | £1000-£4000 plus VAT |
| Reviewing and advising on witness statements from the opponent | 2 to 4 hours | £500-£1000 plus VAT |
| Arranging conference with counsel including preparation of brief to counsel | 1 to 3 hours | £250-£750 plus VAT |
| Attending conference with counsel including preparation and travel time | 2 to 4 hours | £500-£1000 plus VAT |
| Preparing and agreeing list of issues, chronology and witness list for trial | 1 to 2 hours | £250-£500 plus VAT |
| Attending on and corresponding with client and all other parties and relevant contacts throughout the claim | 5 to 10 hours | £1250-£2500 plus VAT |
| Exploring and, if possible, negotiating settlement throughout the claim | 1 to 3 hours | £250-£750 plus VAT |
VAT is charged at the prevailing rate (currently 20%) on the hourly rates and any disbursements or expenses that are incurred.
The fee will be reduced if some of the above stages are not required or, alternatively, if a client chooses to deal with parts of the claim themselves and instruct us for a selected number of stages only. We are happy to discuss your requirements in this regard.
For wrongful dismissal claims, being claims for notice pay, we may provide advice on the claim, prepare a letter to the opponent and advise on a response and would expect this to take 2 to 4 hours of work. A review will then take place and an agreement will be reached for any next steps to be taken and the charges to be incurred should any further work be required.
Given the nature of employment litigation, we do not offer a fixed fee service. We do however endeavour to keep clients updated as to the potential costs and, where possible, arrange caps to our fees for certain aspects of litigation.
Timescales
The time that a claim takes from instructions to completion varies and depends both on the facts and circumstances on the claim and the stage at which the claim is resolved.
Settlement at the pre-action conciliation stage may see the case conclude within around six weeks, whereas a one-day trial may see the case conclude within 12 months, and a three day trial may take up to 18 months to conclude, depending on the listing availability at the Employment Tribunal.
Timescales will be estimated at the outset following an assessment of the relevant facts and circumstances and updated as the claim progresses.
Responsibility and Liability for Costs
In Employment Tribunal proceedings it is usual that each side bears its own legal costs. It is usually only in the event that one party has acted wholly unreasonably that the Tribunal would order one party to pay the other’s costs such as where there were no real prospects of success or where there have been wasted costs due to one party not adhering to a case management order.
Alternative Funding Options
In some cases, you may be able to claim back your legal costs under a pre-existing legal expenses indemnity insurance policy and you should check your home buildings and contents cover to see whether you are covered for such litigation.
Similarly, if you are a member of a trade union or other representative body, they may be able to assist with your employment law issue or indemnify your legal costs.
Separately, in some cases, we can agree to a Damages Based Agreement (DBA) whereby we agree to deduct our costs from any damages awarded up to an agreed percentage.
If you would like to speak to someone in our Employment Law Team, please contact our Office on 01457 761 320 and you will be directed to the solicitor who is best equipped to deal with your legal matter.
