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Employment Law for Employers

Employment Tribunal Fees for Employers

If you have had a Tribunal claim brought against you by an employee or former employee for wrongful or unfair dismissal, discrimination or any other employment claim, we understand this will have a huge impact on your business. You will naturally be concerned about the impact on your reputation, productivity of your other employees as well as the potential financial implications. 

In order to secure successful representation, it is recommended you seek legal advice so you understand your rights and obligations.  The overall cost in legal fees to defend your claim will be subject to the circumstances that have brought you to this point.  It is only after our initial consultation that we will be able to advise you as to the estimated costs and enable us to explain what you can expect at every stage.  We will take the time to listen to your situation and tailor our advice accordingly with the objective of securing a favourable outcome.

Initial consultation

Our Employment Law team has years of experience supporting employers in matters of employment law, specifically in representing employers in Tribunal claims. In order to understand the claim that has been brought against you, the background and therefore the likely fees and chance of success at Tribunal, we are required to have an initial consultation which is charged at an hourly rate and normally lasts between 60 to 90 minutes:

Our fees above include any calls prior to the initial consultation and a review of key documentation so that we are aware of the principal facts of the claim. 

Fees to represent my business at Employment Tribunal

Should you choose to instruct us, our fees to represent you are based on a rate per hour, which are as follows:

There will occasionally be a Trainee Solicitor or Paralegal who will work with one of our qualified Solicitors on your matter.  In this event, we will notify you prior to any activity; their hourly rates are charged at £100 – £175 (plus VAT at 20%).

Throughout your claim with us you it will also be necessary for you to engage with our Senior Legal Assistant, Niki Coombes, whose hourly rate for work that is chargeable is £150 per hour + VAT at 20%. Niki will be completing the administrative work required to progress your matter, which is not chargeable.

We would highly recommend that you confirm with your insurers or broker before instructing any legal counsel to ascertain whether you have a legal expenses insurance policy, or a Directors and Officers Liability policy.  This may indemnify your business for legal fees and compensation, depending on their terms.  We would agree a rate with your insurer at the outset of proceedings.

Estimated costs to defend my business at Tribunal

Based on the information above, we calculate that a stypical case of wrongful or unfair dismissal, when defended, will incue between £8,000 and £15,000 in our fees (plus VAT at 20%). There may also be a barrister's fees of between £2,000 - £6,000 (plus VAT at 20%)

It can be difficult to estimate the fees for your particular claim as every situation will be different.  The fee estimate given here is based on a typical case of unfair dismissal not including any complications that may arise while defending your claim, for example:

  • Discrimination or whistleblowing is included in the claim.
  • A high number of documents need to be reviewed.
  • Additional days are required for the hearing.
  • Negotiations for a settlement are extended due to the seniority of the employee bringing the claim.
  • Any change in instructions.
  • Specific applications to the Tribunal are required. 
  • If any adjustments are needed for the claimant that may lead to additional hearings or the need for medical evidence. 
  • Judicial mediation is required. 
  • The documentation involved in the matter extends to complex reviews with numerous witnesses to interview. 

Should any of these unforeseen issues arise, this may require more time spent reviewing and defending your claim, hence an increase in the overall cost.  We will, of course, discuss this with you should this occur, and we are flexible regarding our payment structure, working with you to find a payment plan that assists your business cash-flow. 

Process of defending your claim

We will provide you with an overview of the work we will be undertaking on your behalf with an estimate timescale and relevant costs.  During the claim, we will stay in contact with you to update you with any developments, as well as any changes that will need further work.  The work included in our fees will include:

  1. Reviewing all of the relevant documentation and taking formal instructions.
  2. Drafting an ET3 (response form for your claim) for your approval and filing this with the Tribunal.  Should a Formal Response be required, which is a separate document occasionally needed for more complicated matters, we would recommend a barrister at an early stage to draft the Response. We will naturally discuss this with you as, while this may reduce our time spent on the Response, this will incur barristers’ fees of approximately £1,500 to £3,500 (plus VAT at 20%) depending on complexity.
  3. We will seek contact to negotiate a settlement through ACAS Early Conciliation where possible and if this is appropriate.  If a settlement is offered and rejected by the claimant, we will respond accordingly and discuss the next steps with you.
  4. Preparing and representing you at the preliminary hearing.  This is normally a telephone hearing with a Judge and the representatives from both parties.   The facts of the claim will be heard and a timetable for the claim will be set, which will include confirmation of the Tribunal hearing date. As appropriate, we may instruct a barrister to represent you at this hearing.
  5. Ahead of the Tribunal date, we will conduct the relevant administrative steps and review the documentation submitted by the claimant, including their schedule of loss.
  6. We will prepare the necessary paperwork for the Tribunal hearing.
  7. Finally, we will instruct barristers to proceed with the final hearing if required.

Unless otherwise discussed, our fees will not include:

  • Advising or managing any taxation implications
  • Managing any appeal you may wish to take or defend against the decision made by a Tribunal or Court.

Timescales

It is difficult to provide a definitive timescale until the facts of each claim are understood and your instructions received.  There are many factors that will determine how long a claim will take, including:

  • The responsiveness from both you and the claimant
  • The length of time to have the claim listed for hearing at the Employment Tribunal
  • Any unforeseen changes in the law or similar cases that impact the outcome
  • The speed of any settlement negotiations

From our experience, a claim that goes to a final hearing will take between 12 to 18 months.

Third party payments

It may be necessary to make third party payments, known as disbursements, to others on your behalf and which are payable by you. These may include:

  • Travel (charged at 40p per mile),
  • Hotel/accommodation costs,
  • Medical reports or evidence,
  • Photocopying and
  • Barrister’s fees as referred to above.  

We will be able to inform you of the likelihood of any of these costs being payable at the beginning of your claim, we will update you as and when these will be needed and will always obtain your approval before proceeding.

You may set an upper limit on our charges and disbursements (excluding VAT at 20% in both cases) with a view to seeking your authority before exceeding that limit. If you wish to do so, we would ask you to indicate in writing the upper limit you would like to set.

If the claim reaches Tribunal you will also be responsible for advocacy costs; i.e. the costs for the barrister to represent you. Barrister costs range from £2,000 a day to £4,000 a day depending on the seniority of the barrister.  We will suggest a barrister to you based on the details of the claim being brought against you.  We have excellent relations with a number of barristers’ chambers and obtain very competitive fee rates, making recommendations to you based on the nature of the claim as well as the financial parameters facing you and your business.

Contact our Employment Tribunal Claim Solicitors

Should you be facing an Employment Tribunal claim, you can contact a member of our Employment Law team in our offices in Andover, Romsey, Salisbury, Totton or Witney by using the Contact Form, emailing info@parkerbullen.com or calling one of the phone numbers below: