Business Employment Law Pricing Information

Our employment law specialist, Grace Smyth has experience of handling a range of employment law matters, including unfair/wrongful dismissal and discrimination. Grace is a Solicitor in the Business Services Team, qualifying in 2022. She has day-to-day responsibility for all employment law work within the firm and is supervised by Victoria Spellman, a Partner in the Business Services Team.

Pricing Information – for unfair dismissal and wrongful dismissal only

An employment claim for unfair/wrongful dismissal that goes before a full hearing of the tribunal, having passed through the necessary stages to get that far, can cost anything from £15,000 to £60,000 plus VAT* depending on the complexity of the case.

Simple case: £15,000-£20,000 (plus VAT*)

Medium complexity case: £20,000-£40,000 (plus VAT*)

Complex case: £40,000-£60,000 (plus VAT*). The overall fees could be higher, in some circumstances, if your case is particularly complex.

We charge based on an hourly rate of £330 plus VAT?* although fixed fee arrangements are available in some circumstances.

Factors that could make a case more complex include:

• If it is necessary to make or defend applications to amend claims, or to provide further information about an existing claim
• Defending claims that are brought by litigants in person, or bringing a claim where the employer is not represented
• Making, or defending, a costs application
• The number of witnesses
• The volume of documents
• If the claim involves automatic unfair dismissal
• Multiple factual allegations
• Claims for constructive unfair dismissal

An employment tribunal decision may also be subject to appeal. This could significantly increase the upper costs figure of £60,000 plus VAT* quoted above although the actual cost will depend on a range of factors including how high up the appeals process the claim proceeds. We can provide further, more tailored information, when we have more details about your case.

The vast majority of claims settle before they reach a tribunal, usually within a budget of £15,000 plus VAT* and disbursements.

You may be able to fund your case via legal expenses insurance attached to your household or car insurance policy. It is important you check whether you have this insurance in place, before you make the decision to instruct us and agree to pay our fees. If it transpires you do have insurance in place, it is highly unlikely the insurance company will agree to reimburse you the cost of our fees that have already been incurred.

Disbursements – for unfair dismissal and wrongful dismissal only

Disbursements are costs related to your matter which are payable to third parties. We handle the payment of disbursements on your behalf.

We normally instruct a barrister on your behalf, to act as your advocate in any court hearings. The cost of instructing a barrister depends upon:

• the experience of the barrister;
• the type of hearing;
• the complexity of the hearing;
• the length of the hearing;
• the volume of documents involved; and
• the length of notice given before the hearing date. Higher fees are charged for instructions at short notice.

Barristers’ fees are agreed in advance with the barrister’s chambers, on a case-by-case basis.

Barristers charge a daily rate for court attendance. A ‘brief fee’ will be charged for preparation and the first day of the hearing. Thereafter, ‘refresher’ fees will be charged each additional day of the hearing. For a simple case, where the hearing is listed for no more than 1 day, the barrister’s fees are typically between £2,000 and £20,000 plus VAT*.

Most cases of unfair/wrongful dismissal are capable of being dealt with at tribunal in a day. But, in more complex unfair dismissal/wrongful dismissal claim, the Employment Tribunal hearing could last for multiple days.

Both the barrister and we may charge a fee if the hearing is cancelled at short notice, regardless of the reason the hearing is cancelled. In these circumstances, the barrister is likely to charge 100% of their “brief fee”, which covers preparation for, and the first day, of the hearing. If your hearing has been listed to last multiple days, we would also charge for 6 hours of time for the cancelled first hearing day.

It might be advisable to obtain a barrister’s opinion on certain aspects of your case, or to prepare documents upon your behalf. The cost depends upon:

• what the barrister is being asked to do;
• the experience of the barrister;
• the complexity of the claim;
• the volume of documents involved;
• the notice given for completion of work. Higher fees are charged for instructions at short notice.

Preparing documents and advisory work is usually charged by the barrister at an hourly rate, which is dependent upon the points listed above.

Court fees are not payable for claims that are issued in the Employment Tribunal. However, the Employment Tribunal only has the power to award up to £25,000 for breach of contract. If the claim for contractual breach exceeds £25,000 then it might be issued in the High Court or County Court.

Court fees are payable for claims brought in the High Court or County Court. The Claimant must pay a fee when the claim is issued (the fee is currently 5% of the value of the claim, where the claim exceeds £10,000) and before the hearing takes place (the hearing fee is currently £1,334). Other fees might be payable by the Claimant or Defendant, for example, to make an application to the court.

Recovery of legal fees

If a case is issued in the Employment Tribunal, then the Tribunal will not necessarily make an order that the unsuccessful party pays the other side’s legal fees. It is the exception, rather than the rule, the legal fees are recovered from the unsuccessful party.

If a breach of contract claim is issued in the County Court or High Court, and if your case is successful, you will normally be entitled to recover from your opponent fixed costs, or a proportion of your total fees.

Key Stages – for unfair dismissal and wrongful dismissal only  

The fees set out above cover all of the work in relation to the key stages of an unfair dismissal/wrongful dismissal claim. At each stage you must consider the risks of not winning your case against the possible benefits of doing so and the cost involved. The key stages of an unfair dismissal/wrongful dismissal case issued in the Employment Tribunal are:

• Taking your initial instructions; reviewing the papers and advising you on merits and likely compensation (this is likely to be revisited throughout the matter and is subject to change);
• Entering into Early Conciliation with ACAS to explore whether a settlement can be reached;
• Preparing a claim or a response;
• Reviewing and advising on the claim and response from other party;
• Exploring settlement and negotiating settlement throughout the process;
• Preparing or considering a schedule of loss;
• Preparing or considering a counter schedule;
• Preparing for and attending a preliminary hearing, or instructing a barrister to attend on your behalf;
• Collating and considering relevant documents for disclosure;
• Exchanging documents with the other party and agreeing a bundle of documents;
• Preparing the bundle of documents;
• Preparing and finalising witness statements;
• Reviewing and advising on the other party’s witness statements;
• Taking your instructions, and out witnesses’ instructions, upon the other party’s witness statements;
• Agreeing a list of issues, a chronology and/or case list;
• Preparation and attendance at final hearing, including preparing the barrister’s instructions.

The stages set out above are an indication of the work needed to prepare a case for trial. You may wish to handle the claim yourself and only have our advice in relation to some of the stages. This is obviously more cost-effective, and can be arranged on an individual basis.

How long will my matter take?

The time taken from your initial instructions to final resolution, depends at which stage your case is resolved. If a settlement is reached during the ACAS Early Conciliation Process (before an Employment Tribunal claim is issued), your case is likely to take up to 18 weeks. If Employment Tribunal proceedings are issued, then your case could take 12-30 months from the date a formal Response to the Claim is filed with the Tribunal, but it could take longer if there are delays at the Employment Tribunal. This is just an estimate, and we will, of course, be able to give you a more accurate timescale once we have more information and as the matter progresses.

For further information and a more bespoke quotation based on your individual circumstances please contact Grace Smyth.

*VAT is charged at the rate of 20%