Employment work

Costs

Our Employment team provides advice to both claimants and respondents in relation to claims for unfair dismissal and wrongful dismissal before the Employment Tribunal. We charge for our work on a time spent basis, based on hourly rates ranging from £225 – £650 per hour, depending on the seniority and level of experience of the fee earner working on the matter. To find out more about our Employment Practice and our Employment team’s individual profiles, please click here.

The overall cost of a matter will vary depending on the complexity of the issues raised, among other factors. Our estimated fees[1] for bringing and defending claims in the Employment Tribunal for ‘ordinary’ unfair dismissal or wrongful dismissal are as follows:

• Simple case: £25,000 – £40,000
• Medium complexity case: £40,000 – £85,000
• Highly complex case: £85,000 – £150,000

Claimants and respondents should check whether any costs in connection with bringing or defending claims in the Employment Tribunal are covered by a policy of insurance maintained by the applicable party.

Please note that any fee estimate we may provide will only be an estimate and will not constitute a fixed-fee arrangement or similar. If any unexpected complications arise we will discuss with you the potential consequences and the impact this may have on our fees. Complicating factors that can lead to an increase in costs include:

• the number of additional claimants or respondents;
• the extent to which the other side defends proceedings;
• whether the claimant is a litigant in person;
• whether additional applications to amend or to provide further information about an existing claim are made;
• the need to resolve preliminary issues such as jurisdiction and/or employment status;
• making or defending a costs application;
• the level of disclosure and evidence required, including the volume of documents and number of witnesses required;
• Tribunal delays and postponement of hearings;
• the need for a Preliminary Hearing;
• whether the claim is particularly complex and/or involves an automatically unfair reason, such as whistleblowing or TUPE;
• if there are additional free-standing claims such as discrimination, harassment or victimisation;
• the length of the Final Tribunal Hearing;
• the extent to which remedy is contested, and whether there is a separate Remedy Hearing;
• the level of correspondence produced by the other side., including in relation to agreeing a list of issues, chronology and/or Hearing bundle

Additional disbursements

As part of a Tribunal Hearing you may also have to pay additional expenses, including (but not limited to) fees of a barrister and expert witnesses, copying charges and courier fees. These costs will be in addition to our estimated fees above.

The main third-party cost associated with a Tribunal claim is the cost of instructing a barrister (known as Counsel) to represent you at a Tribunal Hearing. This cost will be in addition to our estimated fees above. We will discuss with you whether it is cost-effective to instruct Counsel to draft any pleadings in the claim. Counsel’s fees for representing you at a Final Tribunal Hearing are normally made up of a brief fee (which includes preparation and attendance at a one-day hearing) and a daily refresher rate (for attending any additional Hearing days). Counsel’s fees for representing you at the Final Tribunal Hearing are estimated as follows (depending on their experience, the complexity of the case and the hearing length):

• a brief fee of between £2,000 – £15,000; and
• a daily refresher rate of between £1,500 – £4,000.

We will discuss potential options and costs of Counsel with you.

Key stages

The main stages of a Tribunal claim include, but are not limited to:

• taking initial instructions, reviewing necessary documentation and advising on the merits of a case and likely compensation (this is likely to be revisited throughout the matter and subject to change);
• exploring the potential for a settlement to be reached, including through pre-claim conciliation where required;
• preparing a claim or response;
• reviewing the other side’s claim or response;
• communicating with the Employment Tribunal and the other side;
• drafting, agreeing and finalising Tribunal documents, including a schedule of loss, witness statements, a list of issues and cast lists;
• reviewing Tribunal documents submitted by other parties;
• instructing and liaising with Counsel;
• exchanging documents with the other side and agreeing a bundle of documents; and
• preparation for and attendance at Tribunal Hearings.

Timescale

If settlement is reached during pre-claim conciliation, the case is likely to take 1-3 months. However, Tribunal claims can last in excess of 12 months, although this will depend on the location of the Employment Tribunal to which the claim is assigned, the complexity of the case, the number of days required for the Final Tribunal Hearing (and any separate Remedy Hearing), delays at the Employment Tribunal and whether the matter is settled before a Final Tribunal Hearing. This is an estimate and once we have a full understanding of a case we will be able to provide a more accurate guidance on the likely timescale.

Additional costs

Please note that any fee estimate will not include the following work:

• advising or engaging in settlement negotiations;
• advising or preparing any settlement documentation;
• advising on or responding to data subject access requests and other General Data Protection Regulation queries;
• advising on or participating in any form of mediation;
• involvement of Counsel at any stage in the litigation process;
• any detailed analysis of appropriate efforts to mitigate loss; and
• any orders requiring you to pay the other side’s costs or time spent preparing any dispute over costs.

All fees and costs are exclusive of VAT and disbursements which will be added where applicable to each bill.