How much is an Employment Tribunal claim?

The short answer is that it is currently free to submit the documentation required to bring or defend an Employment Tribunal claim. There are currently no court fees payable to the Tribunal itself. However, while access to the Tribunal is currently free, the costs that do arise are typically those associated with obtaining professional advice and representation, and these can vary significantly depending on a range of factors.

How are legal fees calculated?

In most cases, legal fees are determined by the amount of time spent working on the case and the hourly rate of the advisor. The more complex or protracted a matter becomes, the more time is required for tasks such as reviewing documents, drafting pleadings, gathering evidence, and advising on next steps.

Hourly rates will typically vary depending on the experience and seniority of the individual carrying out the work. As a result, overall costs can differ substantially not only based on the nature of the case, but also on who is instructed to act and how the work is allocated.

Key factors that influence the cost of a claim

The cost of an Employment Tribunal claim depends on a range of factors:

The nature of the claim

The type of claim being brought is one of the most significant factors affecting costs.  Cases such as those that solely relate to unfair dismissal, or unlawful deduction of wages, often involve less issues, fewer witnesses, and the final tribunal hearing is typically shorter, than complex cases such as when discrimination is alleged. Read our blog to find out what’s involved in Employment Tribunal proceedings?

Preliminary hearings

Complex cases, such as those involving discrimination, will often require one or more preliminary hearings before the final hearing. These hearings may address case management issues such as how long the case should be listed for (how long the final hearing should be). Alternatively, specific issues can be determined at a preliminary hearing. Matters to be determined may include, for example:

• Whether a claim has been brought within the relevant time limits
• Whether a claimant is disabled for the purposes of the Equality Act
• Applications to strike out parts of a claim
• Applications to amend a claim or response

 

Each preliminary hearing requires preparation, and representation may well be useful, particularly when elements of a claim are to be determined. Where there are multiple preliminary hearings, costs can increase significantly. For more information on preliminary hearings, read our blog what happens at an Employment Tribunal preliminary hearing?

Volume and Complexity of the material

 

The amount of documentary and witness evidence involved in a case can also have a substantial impact on costs.

Examples of tasks that are affected by the quantity of material

• Reviewing disclosure documents
• Preparing witness statements
• Preparing hearing bundlesOther factors

Other factors

 

A range of additional factors can also influence the overall cost of an Employment Tribunal claim. For example, cases may become more expensive where there are:

• Amendments to claims or responses during the proceedings
• Disputes over disclosure or the scope of evidence
• Late production of documents or witness evidence
• Additional applications requiring Tribunal involvement
• The number of hearings involved in the case

More generally, the way in which a case progresses—whether issues are narrowed early or become more complex over time—can have a direct impact on the amount of work required and therefore the overall cost.

Length of final hearing

 

The duration of the final hearing is another major cost factor. A case listed for one or two days will typically require less preparation and advocacy time than longer cases.

Longer hearings typically involve:

• More extensive witness evidence
• Larger document bundles
• Greater preparation time
• Increased advocacy costs

How legal fees are structured

 

Different providers adopt different pricing models, and understanding these can help parties anticipate potential costs.

Hourly Rate

 

The most common form of pricing is charging on an hourly rate basis. Legal work is billed according to the time spent on the case, with rates varying depending on the experience and seniority of the advisor carrying out the work.

This approach provides flexibility, for the provider, particularly in cases where the extent of the work required may go beyond what was anticipated.  However, this approach can make it more difficult to predict overall costs at the outset. For this reason, firms will often provide broad indicative estimates, based on the complexity of the case.

Fixed Fee

 

Some firms may provide fixed fee estimates relating to particular phases of work such as drafting the particulars of claim or attending a preliminary hearing.

Adhoc advice

 

Such an approach enables the client to receive support as and when needed and to only pay for that advice, rather than to commit to having professional support for the whole case. This may mean, for example, questions being answered over the phone or assistance with drafting particular documents.

 

Disbursements and third party costs

 

In addition to legal fees, parties should also consider disbursements—costs payable to third parties in connection with the case. These commonly include barrister fees for advice and representation, as well as the cost of obtaining medical opinions or other expert evidence where required.

Cost recovery in the Employment Tribunal

 

It is important to note that, unlike in many civil courts, a costs award at the Employment Tribunal is an exception rather than the rule. This means that, win or lose, each party generally bears its own costs.

However, costs orders can be made in certain circumstances, such as where a party has acted unreasonably in bringing a claim.

Funding options: No Win, No Fee

 

For individuals considering bringing a claim, funding arrangements such as no win, no fee may be available. A common funding arrangement is a damages based agreement whereby the firm receives a percentage of the sum awarded as their fee.

Whether no win no fee is available or not will depend on a number of factors such as the prospects of success, the nature of the claim, the approach of the firm etc. No win no fee options are popular, but it is important to consider carefully which option is most suitable based on individual circumstances. To find out more about no win no fee, read our blog the real meaning of no win no fee

Ways to potentially reduce fees

 

There are several practical steps that parties can take to reduce the cost of an Employment Tribunal claim.

Early legal advice

 

Obtaining legal advice at an early stage can help clarify the strengths and weaknesses of a case, identify key issues and next steps. Early intervention can often prevent unnecessary costs later in the process. For example, identifying that claims, or elements of them, were brought out of time.

Settlement discussions

 

Depending on the circumstances, it may be appropriate to settle the case before it progresses to a hearing. Such an approach provides peace of mind and may dramatically reduce fees.

Limited professional advice

 

As referred to above, Ad hoc advice could provide support when needed whilst enabling the client to control costs.

Plotkin & Chandler works exclusively in the areas of HR and employment law.

We have expertise in advising on all aspects of bringing, and defending, an Employment Tribunal claim and we consider taking on cases on the basis of a Damages Based Agreement, in appropriate circumstances. We are also happy to provide support on an adhoc basis, as and when needed and will consider providing assistance on a fixed fee basis, where appropriate.

To discuss your requirements, and the ways in which we can help, call us for a no obligation consultation on 020 3923 8616 or email us at info@plotkinandchandler.com