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Legal Costs


Search our in-depth knowledge centre for answers to your employment questions, plus hints and tips from the experts.

20 Dec, 2022
Lawyer is a generic term; solicitors and barristers are both lawyers. However, there are some very important differences between solicitors and barristers regarding their training, the work they do, how they work and how they are regulated. In England and Wales we have a split system with a division of labour between barristers and solicitors. In other countries such as the USA there is a fused system where all lawyers can potentially, do all things. It can be helpful to think of barristers as the “front of house” of the legal system (the Courts) and solicitors as making up the “back office”. However, there is no pecking order as such when it comes to solicitors and barristers, one is not better, more senior or more important than the other! Role and purpose Barristers are engaged by solicitors to work on their client’s case (referred to as “being instructed”). Solicitors will usually have a good knowledge of the different barristers chambers and the specialisms of the barristers working within them. This means they are in an ideal position to match up clients with the most appropriate barrister for their case. Barristers are essentially advocates whose role is to explain an individual’s case in court and argue their position. They are less likely to be involved with a case until it is apparent that it will end up in a court hearing – many cases settle before this stage and so there is never any need to get a barrister involved. Barristers can also advise clients on the strength of their case, assist with drafting documentation prior to any court hearing and help with negotiations but, generally this is something which will be handled by primarily a solicitor. Solicitors will often attend court with their barrister but, only to take notes and help with the documentation. The caveats to all that… For many years barristers were the only people authorised to present cases in the “higher courts” for example, the Court of Appeal and Supreme Court. However, some solicitors do now have rights of audience in the higher courts although this is still very much the exception. We wouldn’t want anyone to get the impression that solicitors are always stuck behind a desk and never get on their feet to argue on behalf of their clients! In the lower courts such as the employment tribunal you are just as likely to see a solicitor as a barrister standing up to address the tribunal. However, when it comes to full hearings and complex cases, it is often more cost effective to hand the advocacy work over to a barrister. Finally, in recent years it has become possible for members of the public to instruct barristers directly without first going through a solicitor. However, the ability to do this is still quite limited to certain types of cases and requires the individual to effectively act as their own solicitor. Training Solicitors will go to law school prior to joining a law firm as a trainee. During their training contract they will learn on the job for two years, rotating through various departments before deciding which specific area of they wish to qualify into. This used to be referred to as “articles” and trainees were known as “articled clerks”. Once they have reached the required standards, qualified solicitors’ names are placed on the roll of solicitors and in England and Wales are regulated by the Solicitors Regulation Authority, which issues practising certificates (renewable every year) to those wish to practise law. The Law Society is the professional body for solicitors. It should be noted that there are some alternative routes to becoming a solicitor and, these are likely to increase in the future. Barristers will attend bar school prior to obtaining a pupillage at a barristers’ chambers where they will work under the supervision of a qualified barrister, generally for 12 months (sometimes longer). Qualified barristers are “called to the Bar” and regulated by the Bar Standards Board Council which maintains the Barristers’ Register showing all those who are authorised to practise in England and Wales and who hold a current practising certificate. Law firms v chambers Solicitors are either employed by their law firm or, are a partner in their law firm or, work in-house as employed solicitors at a company or public sector organisation. Barristers are self-employed individuals who are not allowed to form partnerships and tend to congregate together in offices known as chambers. Each individual barrister in chambers is independent – they group together simply to enable joint administration, marketing etc.. Consequently, two barristers who work out of the same set of chambers may be on opposing sides in a case. However, two solicitors working for the same firm would be prevented from working for clients who were on opposing sides in a case as this would be a conflict of interest and contrary to solicitors’ professional rules. Payment and continuity Solicitors still generally bill by the hour however, barristers are more likely to be paid by the piece of work, i.e. £x to attend for this hearing and £y to draft this document. A solicitor will remain responsible for a client and their case all the way through from start to finish. This is because they are retained by a client to deal with matters as and when they arise. However, a barrister may not always be available for a client to attend a particular hearing because these dates are not previously known. Barristers must honor any booking to appear for another client. This is called the ‘cab rank rule’ and helps keep barristers independent by preventing them from picking and choosing the cases they want to do. This means that a different barrister may have to be found for certain hearings.
20 Dec, 2022
We explained how the hourly rate charging method works and gave some tips on keeping costs down in our previous article: how to keep your legal fees as low as possible . Now, we will take a look at the items you are likely to see listed on your legal bill and explain what these actually are. Jargon buster Imagine you have just received your first bill for legal fees from your solicitor. You open it with a sense of trepidation, fully feeling the fear of the unknown! As you focus on the figures at the bottom of the page you are pleasantly surprised, it’s less than you thought. But, you don’t really understand how it got to that amount, the explanation given is fairly meaningless to you. In this article we will help you decode your legal bill by busting the jargon and setting out, in plain English, what it all means. Most solicitors still charge according to the time spent on your case using the hourly rate method. Generally, clients ‘pay as they go’, with bills being sent periodically throughout a case. If you are paying in this way you will find that the time spent working for you will be recorded by item. We explain what the phrases mean below: Narrative Other than showing the amount which is payable, your legal bill will contain an explanation of what work your solicitor actually did. This won’t be overly detailed but, should be enough to give you an accurate picture of what your solicitor was doing. Depending on the time period covered by the bill it is likely to be no more than a short paragraph of text. This is referred to as the bill “narrative”. You can always request more detail of specific items from your solicitor who will have recorded detailed “time entries” from which the bill and narrative is generated. Taking instructions Instructions refers to the things you tell us. So, for example you will be giving us instructions when you tell us facts about what has happened to you so far in your initial a meeting with us. Equally, you will be giving us instructions if we agree the things you would like us to do for you during a telephone conversation. Attendance note (or file note) A solicitor will write an attendance note after a conversation with you or other relevant party (be that face to face or by phone). This then gets put on the file as a record of what was said. Attendance notes are therefore sometimes called file notes. This enables the solicitor to go back and check what was agreed/advised at that particular time, if necessary further down the line. Time spent drafting or dictating an attendance note will be chargeable. Drafting correspondence/document/pleadings This just means that we wrote a letter or email or put together a document for you. Depending on the nature of your matter this could be a variety of things such as a letter to your employer or a new clause for your employment contract. Pleadings refers to documents which are submitted to an employment tribunal or other court such as an initial application setting out your case (ET1). Reviewing documentation/file Essentially this means reading through the file or other documents. All relevant documentation must be read by a solicitor before they can give meaningful advice. All time spent reading will be chargeable. Taking witness statement In an employment tribunal cases there may be several witnesses, including the claimant themselves, whose evidence will be submitted in support of the client’s claim. This must be set out in a witness statement. Each witness must give a statement regarding the relevant matters. How this is written and what is and is not included is a highly technical matter. It will involve a solicitor firstly gathering all the information from the individual and then writing in such a manner as to comply with tribunal requirements and ensuring it is as helpful as it can be to the claimant’s case. Work on file This is a general phrase which covers various actions such as reading or drafting. Research Contrary to com mon belief, solicitors don’t have an encyclopedic knowledge of all law! Because new laws and regulations are being passed and new cases decided every day the law never stands still. Solicitors will therefore need to check points of law from time to time and this will be chargeable. Considering There are often various tactical issues to be thought about when a case involves negotiations or litigation. Solicitors will charge for this thinking time which may involve discussing best tactics with colleagues. Supervision More junior solicitors will be supervised in all their matters by a partner or more senior solicitor to ensure quality and accuracy. In this way clients can benefit from the greater experience of the supervising solicitor. Reasonable time spent supervising on a matter is chargeable. Instructing counsel Counsel is another word for barrister. If a barrister is needed to represent you at a tribunal or court hearing, your solicitor will find a suitable barrister and book them on your behalf. This involves explaining your claim to them, setting out events so far and providing the appropriate documents so that they can argue your case effectively. Disbursements These are extras payable by you on top of your solicitor’s fees. This could include barristers or other experts such as doctors’ fees, photocopying and court fees.
20 Dec, 2022
This is usually the first question that most people have when considering the risks and benefits of bringing an employment tribunal claim. It is particularly important to understand the likely costs of starting litigation in the employment tribunal as the general rule is that each party bears their own costs – regardless of who, ultimately, wins. Unfortunately, as each case is different, it is very difficult to give a very precise figure at the outset; we set out below some guidelines for our charges. We encourage all clients to check their insurance policies to see if they have “legal expenses” insurance. If so, we can be appointed as your legal representative and your insurer pays your legal fees. Please note it is your responsibility to check whether you have cover and, if so, to comply with the terms of any policy. Wrongful dismissal (a claim for notice monies) These cases are usually simple with limited witnesses. As such, our estimated fee range is £2,000 to £8,000 plus VAT. Unfair dismissal These are generally more complex than wrongful dismissal cases. For a straightforward case (ordinary unfair dismissal only, a 1-2 day hearing and 1-3 witnesses), our estimated fee range is £5,000 – £15,000 plus VAT. For a more complex case that may involve issues of automatic unfair dismissal, more than two days hearing, the need for a preliminary hearing(s) and two or more witnesses, our estimated fee range is £10,000 – £40,000 plus VAT As we say above, the above figures are purely an estimate (and a broad one at that), so please contact us, so we can discuss your specific situation and provide a more detailed/specific estimate of fees. Employment tribunal claims have many different stages to them, and the overall cost of bringing or defending your claim will generally depend on the legal issues involved, number of witnesses and the length of the final hearing. Fixed fees We may be able to provide fixed fee quotations for different stages of employment tribunal claims or for other types of work. Such fees will be bespoke in every case, but we set out guidelines as to what costs might look like above. Time basis The way we usually charge is on a time basis, meaning; the more time we spend, the more we charge. When working in this way, we generally agree budgets / fee ranges with you before undertaking any work and work within those. Also, we ask for money on account and bill monthly to also help put you in control of your legal fees. All our Partners are fully qualified, senior and experienced, with a minimum 15 years’ post-qualification experience; often a lot more. Please see our individual profiles for more detail. All our Consultants, Senior Associates and Associates are also experts in their field all with many years’ experience. When working on a time basis, our Partners and Consultants charge between £350 – £400 + VAT per hour. Our Senior Associates charge £300 + VAT per hour and our Associates charge £275 + VAT per hour. Disbursements When acting for you we may incur costs from third parties. These are known as ‘disbursements’. The disbursement we normally incur is counsel’s fees; usually for representation at an Employment Tribunal. Barristers that we tend to use cost approximately £750 to £2,000 + VAT per day depending on their experience and the case involved. In order to obtain a specific price and quote for any disbursement, we will need to understand the work involved and agree those fees with you and Counsel before they are incurred. We will also always ask you to pay money on account of those disbursements before we incur them, which is our firm policy. VAT All our services are charged with VAT in addition at 20%. Timescales Progressing a case can also be a lengthy process. Although settlement can be achieved within weeks, a simple case may take more than 9-12 months to be heard, a mid complexity case will probably take over 12 months, and a complex case is likely to take more than a year. Further information If you would like any more information about our fees, please contact us ; we can explain everything in detail.
20 Dec, 2022
It’s a brutal fact of work life that sometimes people’s employment is brought to an end by their employer without their agreement and against their will. This may come as a total shock: being called to a meeting and handed a settlement agreement or, there may be warning signs that the employer wants to force an employee out. Either way, engaging the services of an employment solicitor to fight your corner in such a situation can be a very wise investment. Signs you may be being forced out Sometimes the employer will wage a long campaign to wear someone down and try and make them resign. The sorts of tactics which might be employed to generally make someone’s work life more uncomfortable are: imposing changes to duties or responsibilities, changing reporting lines or undermining seniority in some other way, moving someone to a different team, changing work hours or shift patterns, changing terms and conditions, such as withdrawing a benefit, unexpectedly receiving a negative appraisal, failing to be awarded a bonus, unwarranted disciplinary charges, being excluded from decision making, being criticised by managers in front of third parties or otherwise being publicly undermined. Each of these examples will be challengeable on legal grounds, for example, as a breach of contract and an employment solicitor can advise on the best way to pursue that, if desired. Solicitors can provide a sense check However, where an employee suspects a gradual forcing out, they may appreciate a sense check from an independent adviser such as an employment solicitor to test whether their suspicions are likely to be correct. An experienced employment solicitor is likely to have dealt with many similar cases and should be able to recognise when suspicions are well founded. If so, an employment solicitor can help an employee to marshal their thoughts, decide what the best outcome for them is in the current situation and then devise tactics to help them to achieve that desired outcome. Solicitors can advise on tactics for dealing with your employer One tactic may be to resist changes by bringing a grievance or, to fight a trumped up disciplinary charge and an employment solicitor can help a client with that. Alternatively, an individual may decide they wish to leave employment but, on their own terms with a settlement. There is no guarantee that an employer will offer an individual a sum of money to end their employment but, receiving a letter from an employment solicitor on a “without prejudice” basis can often have a beneficial effect and lead to an agreed parting of the ways. Solicitors can negotiate a better deal Employment solicitors are the experts at negotiating settlement agreements and can often achieve a better deal for individuals than that which is first offered by an employer. So, in cases where an employee is shocked to be handed a settlement agreement they should always delay agreeing to anything before they have taken legal advice as to the terms of the agreement. Case study We recently acted for a client who was told their employment was being terminated and was handed a settlement agreement out of the blue. The employer put pressure on the individual to agree the settlement there and then. On taking advice, they realised that their claim was potentially worth quite a bit more than had been offered. Springhouse re-opened negotiations with the employer and increased the final settlement sum paid by over 50%.
20 Dec, 2022
At Springhouse we pride ourselves on consistently getting the right result for our clients. This is a collaborative process: we will always take time to understand our clients’ concerns and help them focus on what the best outcome for them may be. Our knowledgeable employment law specialists will then use their extensive experience to move matters forward and reach an acceptable resolution. The human factor matters Every case is different, no two scenarios will be exactly the same and the human factor – namely the personalities and priorities of the individuals involved – means we need to tweak our tactics every time to achieve the best possible outcome for our client. We will come up with creative solutions However, our overarching aim is always the same: to act in the best interests of our client in everything we do. Sometimes, “best interests”, doesn’t equate to the largest settlement, it might be that a speedy resolution is the best way to help someone because their health is suffering, or that a return to work – on the right terms – is actually better than a termination of employment. Springhouse solicitors are experts in coming up with creative solutions and ways of working to help our clients achieve their aims. We’re with you every step of the way Workplace disputes are stressful for those involved but, there is not much we haven’t seen and this knowledge means we can guide individuals through the process, providing re-assurance and tactical help along the way. The case study below is just one, recent, real-life example of how Springhouse has assisted a client to resolve their workplace dispute in a positive way. Case study The client worked for a government body and was initially being advised by another law firm. The client was going through the disciplinary process, accused of gross misconduct and was off sick, with the threat of a hearing on her return hanging over her. After several months she was getting no closer to a resolution, so she approached Springhouse for help. We were able to write to the employer pointing out the flaws in the disciplinary process to date and this resulted in a generous settlement offer, enabling our client to achieve her aim of leaving her employer on her own terms and averting the risk of a dismissal for misconduct.
20 Dec, 2022
Regardless of the method used to calculate your legal charges – and there are various different options such as a fixed fee or no-win-no-fee, you will need to pay your bill and there are various different funding methods you may wish to consider. Ultimately, individual clients are responsible for settling their legal bills in respect of advice received from Springhouse, but how this is actually funded will vary. One example, when it comes to advice related to a settlement agreement is that a person’s employer agrees to pay in full, or make a contribution to, the individual’s legal costs, as part of the settlement. This is usually recorded in the agreement. While many clients settle their legal bills out of their own pockets, there are some other options, including: specific legal expenses insurance cover for legal fees for employment claims under your home/car/mortgage/ other insurance policy if you belong to a trade union, obtaining a contribution from it towards your fees assistance from a relevant charity, trust or public body such as the Equality and Human Rights Commission (where you claim is one which is relevant, for example in respect of harassment or discrimination) crowd-funding – using an online platform to ask friends, family or the wider public for contributions towards your legal fees. Monies are then sent directly to us to settle your bill. It is always worth checking the terms of your household and motor insurance policies before your first appointment with Springhouse to find out if the legal fees for your case may be covered. People are often unaware that they have an insurance policy which includes cover for legal expenses so, if you are not sure, speak to your insurer.  Relevant articles For more information about how we charge and how to pay our bills, see our other articles: The solicitor’s hourly rate explained Decoding your legal bill How to keep your legal bill as low as possible Ten questions you should ask before hiring an employment lawyer Work involved in preparing for an employment tribunal hearing Crowdfunding
20 Dec, 2022
Each case is different and it is very difficult to give a precise figure for total costs at the outset. Even the most experienced lawyers can’t predict exactly how a case will unfold and how the other side will behave i.e. what and how much work will need to be done. General rule in employment tribunal cases The general rule is that each party in an employment tribunal case pays their own costs – regardless of who, ultimately, wins. This is in contrast to other types of courts where the loser usually pays the winner’s costs. While it is technically possible for an employment tribunal to award costs in favour of one party, the circumstances in which this is done are very limited and often an award will not cover the entire amount spent. As each case is different, it is very difficult to give a very precise figure for total costs at the outset of a case. It can be said with confidence however, that litigation is a very labour intensive business and is therefore expensive for those who wish to bring claims in the employment tribunal. While issuing an employment tribunal claim can focus minds and may encourage the other party to put forward a settlement, individuals should always think carefully about their appetite and financial ability to take a case all the way to a full hearing. No tribunal fees any more but, still other fees… While it is no longer necessary to pay a fee in order to issue a claim in the employment tribunal, you will need to pay legal fees in respect of your solicitor’s advice, preparation for and attendance at any tribunal hearing. Don’t forget that you may also have to pay charges in respect of other experts it may be necessary to instruct such as barristers and medical experts. Settlement before a case is heard by a tribunal Even if your case ultimately settles before it reaches an employment tribunal there will be fees in respect of settlement advice and negotiation to be paid for. Further information For more detail about the charges for bringing an employment tribunal case, see our article: how much will an employment tribunal cost me?
20 Dec, 2022
It’s common for our clients to be concerned about affordability when seeking legal help. We are committed to easing this concern and aim to be as transparent as possible when it comes to our charges. We offer a range of charging methods, and there are numerous ways you may be able to procure funding for your case. Springhouse is proud to offer excellent value for money, meaning our expertise and legal services are available to a wide range of clientele. If affordability remains an issue for you, alternative funding methods – such as crowdfunding – may be of interest.  The infographic below highlights the payment options and possible financial support. For more information, please see our full article on funding your legal case.
20 Dec, 2022
We understand that funding and afThere are a variety of ways we can charge you as well as different ways you can arrange to pay us, all of which are broken down below. Please don’t be shy about asking questions about our charges if you require more information – we are always happy to discuss money matters, without embarrassment. Types of legal funding arrangements Estimates An estimate is a best guess at the final fee. It is not the same thing as a fixed quote. You can always ask your solicitor for an estimate of how much a particular piece of work (such as drafting a specific document) will cost. However, it is often not be possible for them to give an estimate for work a long way in advance as they won’t know exactly how things will progress in the future. Things can easily take an unexpected turn when you are negotiating with other parties, which could potentially take more time and incur larger fees. However, if we detect that any estimate we have given will end up significantly wrong, your solicitor will inform you of this as soon as possible. Paying yourself, as you go In a so-called ‘pay as you go’ arrangement, you will pay for the work we do as your matter progresses, at our standard hourly rate . The outlined hourly rate is a set amount charged for the actual time your solicitor spends working on your case. For example, if the solicitor’s hourly rate is £200 and your matter takes five hours in total, your bill will cost £200 X 5 = £1,000. VAT at 20% will then be added, bringing the total bill to £1,200. Please ask for details of our latest hourly rate. We can agree how regularly we will bill you e.g. once a month or once a certain amount is “on the clock”. Fixed/capped fees Fixed fees A fixed fee means you will know in advance what a piece of work will cost, and you will not pay more than this, regardless of how long it actually takes. In calculating a cost for a fixed fee, we will factor in the likelihood of additional and unexpected work so that the price reflects this. You get total peace of mind as you know in advance what you will pay once the work is completed; we bear the risk of things taking longer. Capped fees A capped fee arrangement means a client will not pay more than a pre-agreed maximum price. In this scenario, you may pay less if the work takes less time than initially estimated. However, it may not always be possible to predict the amount of time that will be spent on your matter, or any particular stage of it, so such arrangements are not always agreed to. However, it is always worth asking if a fixed or capped fee arrangement can be made available. No win, no fee Unfortunately we are unable to offer this service. How can you pay your legal bill? Regardless of the method used to calculate your legal charges, you will need to pay your bill. In the UK, there are various funding methods you may wish to consider to cover the cost. For example: Specific legal expenses insurance Cover for legal fees for employment claims under your home/car/mortgage/ other insurance policy If you belong to a trade union, they may offer a contribution towards your fees Financial assistance from a relevant charity, trust or public body such as the Equality and Human Rights Commission, Crowd-funding, in which individuals donate small amounts to collectively raise the total fee. This is explained in further detail beow. It is always worth checking the terms of your household and motor insurance policies before your first appointment with Springhouse to find out if the legal fees for your case may be covered. People are often unaware that they have an insurance policy which includes cover for legal expenses. If you are unsure what your cover entails, speak to your insurer. Funding employment tribunal cases fees The general rule is that each party in an employment tribunal case pays their own legal costs – regardless of who wins (unlike in other courts where the loser usually pays the winner’s costs). As each case is different, with varying levels of work and preparation required, it is very difficult to give a very precise figure for total costs at the outset of a case. While it is no longer necessary to pay a fee in order to issue a claim in the employment tribunal, you will need to pay legal fees in respect of advice, preparation for and attendance at any tribunal hearing. Even if your case ultimately settles before it reaches an employment tribunal there will be fees in respect of settlement advice and negotiation to be paid for. For more detail about fees in such a situation, see our recent article covering everything you need to know about paying for an employment tribunal . Crowdfunding For clients who want to fund their case using the latest donation based funding, we work with CrowdJustice, a crowdfunding platform for legal action. Their online tool is specifically designed for private fundraising and tailored to employment issues. This enables clients to ask for support for funding the cost of their employment cases from family and friends, as well as other who might be interested in your cause. How does this type of fee funding work? With CrowdJustice, you are in control of the crowdfunding process and there are no upfront fees. Simply sign up on their website , create your account and access their employment law resources. CrowdJustice will handle everything from there, including helping you build your fundraising page. Your fundraising page is private and only people you invite will get access to it, ensuring your privacy is protected throughout. You will be notified when you hit your funding targets. The funds raised are sent directly to the Springhouse client account by CrowdJustice, meaning you do not deal directly with the money raised at any time and don’t have to worry about the administration or compliance aspects of this type of fundraising. It’s important to remember that you do remain responsible for funding the payment of our legal bill until the time that we receive full settlement of our charges from CrowdJustice.
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