Costs for Employment Tribunals

What are the stages of making or defending a claim?

The time involved at each stage will depend on a few factors, including the responsiveness of third parties, the complexities of the case, and other unique circumstances.

For Individuals Raising a Claim

After the initial consultation, should you then instruct us to proceed with your claim, the process typically involves:

• Writing to your former employer and seeking to negotiate a settlement.
• Liaising with ACAS regarding Early Conciliation with a view to negotiating a prompt settlement.
• Draft the necessary documentation to file the claim at Tribunal within limitation.
• If arranged by the Tribunal, represent you at a preliminary hearing.
• We will review the defence once received and advise you in relation to it.
• Directions that are issued from the Judge will include a timetable for the claim.
• In accordance with the issued directions, we will prepare and submit a schedule of loss.
• The next step would be to produce a list of all relevant documents and obtain the Respondent’s documentation as well by mutual exchange.
• A trial bundle will then be produced.
• We will then ensure that witness statements are written and ready for use, in good time before the Tribunal trial date.
• We would generally then instruct counsel to represent you at the final trial if required.
• Provide all necessary support and guidance before, during and after the trial.

For Businesses Defending a Claim

After the initial consultation and at the start of the claim against you, we will provide an overview of the work we will undertake on your behalf. This cost estimate will include an estimated timescale and details on the relevant costs. Throughout the claim, we will update you with any developments and any changes that would need further work.

Typically, after you instruct us to represent you, the process involves us:

• Reviewing relevant documents and taking instructions from you.
• Drafting a response form for your claim, called ET3, for your approval and filing the same with the Tribunal.
• We will seek to negotiate a settlement through ACAS Early Conciliation where possible and commercially appropriate. If the claimant rejects an offered settlement, we will respond accordingly and discuss the next steps with you.
• Preparing and representing you at the preliminary hearing. The preliminary hearing is normally a telephone hearing, with a Judge and the representatives from both parties. The claim facts will be heard and a timetable will be set for the claim. This will include confirmation of the tribunal hearing date.
• Before the Tribunal date, we will conduct the relevant administrative work and review the documentation submitted by the claimant, including their schedule of loss.
• We will prepare the necessary paperwork for the Tribunal hearing. This will include the witness statements and bundle of documents.
• Finally, we will instruct counsel to proceed with the final hearing if required.

All of these steps are included in our hourly rate. More details on costs, and what isn’t covered by our fees, in the sections below.

How long does an employment tribunal take?  How much does an employment tribunal cost?

Our legal team works on an hourly rate basis. The standard hourly rates are between £110 to £350 excluding VAT, depending on the person instructed. Legal fees attract a VAT rate of 20%. It’s difficult to give an exact rate without knowing the details, but we’re able to advise on typical costs below. For a better idea of costs for your circumstances, please call us at 01432 278 179 and we can advise.

Costs for Individuals

Based on our years of experience, a typical case of unfair dismissal would incur costs of:

• £1,710 and £3,520 excluding VAT of our fees
• Plus advocacy costs

Over a period of 1 to 12 months. More details on these costs below.

Initial Consultation

To start the process, we will request details from you so we are able to prepare for the initial consultation. The initial consultation is typically an hour-long appointment and payment will be due for this. We will discuss your claim with you, confirm your eligibility to bring a claim, your legal rights, the prospect of success, and a range of other details that you will need to be aware of before starting a claim.

The typical fee for the entire initial consultation process covers 1-2 hours at our hourly rate, to cover the time to prepare, the full hour’s discussion, and some follow-up after the consultation.

Raising a Claim

After the initial consultation, our fees to represent you are based on a rate per hour of £110 to £350 excluding VAT depending on the person instructed. We will notify you of the applicable rate when you instruct us. Throughout your claim, you will also work with our Legal Secretaries. Costs will all be itemised on the invoices to show who, for what reason, and for what amount, you are being billed costs by the firm.

Factors that Affect Cost

We will advise you during the course of the claim if there are additional costs or time required. Complications that would increase the time spent on your claim, and therefore your overall costs, could include:

•     If a second preliminary hearing is required.
•     If other claims, such as discrimination or whistleblowing, are involved.
•     Where applications are made to make amendments to the claim.
•     Where there are applications to tribunal for specific orders to be made.
•     If you are disabled, further hearings, additional directions involved, medical evidence, or Expert witnesses may be required.
•     If there is an excessive number of witnesses, documents, or email chains related to the claim.
•     If you wish to appeal or we need to apply for reconsideration of the judgment.
•     Third party costs, known as disbursements, listed in another section below.

Is there any funding support?

Legal aid isn’t available for employment disputes. This leaves two main options to pay legal costs of an employment tribunal: a legal expense insurance cover on an insurance policy such as home contents, or you may decide to pay privately. We will discuss the options with you during the initial consultation.

Costs for Businesses

Based on our years of experience, a typical case of unfair dismissal would incur costs of:

• Between £1,500 and £4,000 excluding VAT of our fees
• Plus advocacy costs

Over a period of 1 to 12 months. More details on these costs below.

Initial Consultation

To advise on your case, we will have an initial consultation with you. Prior to meeting, we typically have several calls prior to be sure we are aware of the facts of the claim. Then, we will meet for typically 60 to 90 minutes to discuss the claim made against you, discuss the options available, and the related consequences, issues, and other relevant details depending on the case. Including the prior discussions, meeting, and follow up after the consultation, this would typically incur 2-3 hours at our hourly rate.

Fees to Represent Your Business at Tribunal

After the initial consultation, our fees to represent you are based on a rate per hour of £110 to £350 excluding VAT dependent upon the person. Throughout your claim, you will also work with our Legal Secretaries. These costs will all be itemised on the invoices to show who, for what reason, and for what amount.

Factors that Affect Cost

All claims are unique. By its nature, litigation requires us to be flexible to respond to the complexities of the case. We will advise you during the course of the claim if there are additional costs or time required.

Complications that would increase the time spent on your claim, and therefore your overall costs, could include:

•     If a second preliminary hearing is required.
•     If other claims, such as discrimination or whistleblowing, are involved.
•     Where applications are made to make amendments to the claim.
•     Where there are applications to tribunal for specific orders to be made.
•     If the claimant is disabled, further hearings, additional directions involved, medical evidence, or Expert witnesses may be required.
•     If there is an excessive number of witnesses, documents, or email chains related to the claim.
•     If you wish to appeal or we need to apply for reconsideration of the judgment.
•     Third party costs, known as disbursements, listed in another section below.

Is there any funding support?

You may have an insurance policy that covers legal expenses, or a Directors and Officers liability policy, which may indemnify the business for compensation and legal fees. This will depend on your insurer’s terms. We strongly recommend you contact brokers or insurers to discuss the cover they would be able to offer for the services we provide. If your fees are covered by insurance, we would agree a rate with your insurer.

What does the hourly rate include?

Our hourly rate encompasses the time spent on your behalf, excluding additional expenses which are detailed below. Prices are excluding VAT. Legal fees attract a VAT rate of 20%. This hourly rate includes meetings with you and perhaps other authorised persons on your behalf; reading, preparing and working on papers; making and receiving telephone calls, emails, faxes and text messages; preparation of any detailed costs estimates, schedules and bills; and time necessarily spent travelling away from the office on your behalf.

And specifically in the case of debt recovery, our hourly rate includes:

•     Taking your instructions and reviewing documentation
•     Undertaking appropriate searches
•     Sending a letter before action
•     Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
•     Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
•     When Judgement in default is received, write to the other side to request payment
•     If payment is not received, providing you with advice on next steps and likely costs

Expenses on top of our hourly rate can include, but are not limited to:

•     rail and air travel charged out at cost and travel by car is charged at a flat rate of 45p per mile;
•     car parking; and
•     the full cost of overnight accommodation if required.

Any applicable expenses would be discussed with you before they are incurred.

What are the possible third party costs involved?

Please note that payments due to other third parties, known as disbursements, are not included in our fees. These disbursements include, but are not limited to: Barristers, Experts, and Court Fees.

If your claim proceeds to Tribunal there will be advocacy costs, which are paid to the barrister to represent you in tribunal. The cost will depend on the seniority of the barrister, the complexity of your claim, and the trial length. Typically, Barristers cost £500-£1,500 excluding VAT per day. Therefore, a typical two day trial advocacy cost would likely be in the region of £1,000-3,000 excluding VAT, plus any travel expenses necessary and agreed with you.

If an Expert or Barrister needs to be instructed you will be provided with a list of quotes for your approval prior to engaging their services. We will request monies on account to pay for their services if required. We will advise on which Barrister we would recommend based on our experience, to assist you throughout the entire process.

You will be notified of any other disbursements before they are incurred and asked to make payment on account.

Speak to one of our solicitors and get bespoke advice. Please call 01432 278 179 and we can discuss your case.