Ten ways to Fund an Employment Tribunal Dispute
At Witan Solicitors, we understand that pursuing or defending an employment tribunal dispute can be financially challenging. To make the process more accessible, we offer flexible funding options tailored to your needs. Whether you’re an employee seeking justice or an employer facing a claim, our transparent and affordable funding solutions ensure you receive expert legal support without undue financial stress.
Flexible Funding Options for Employment Tribunal Disputes
Here are the key funding methods available to help you manage the costs of your employment tribunal case:
Pay-As-You-Go on Hourly Rates
With the pay-as-you-go model, you are billed for the time spent on your case at an agreed hourly rate. This option provides flexibility and allows you to control costs by deciding how much legal support you require at each stage.
Key Features:
- Transparent Billing: You receive a detailed breakdown of time spent on your case.
- Flexibility: Pay only for the legal work you need, such as document preparation or representation at hearings.
- Customisable Support: Choose which aspects of your case you handle yourself and which you want us to manage.
Who is it for?
- Clients who want full control over their legal budget.
- Those with straightforward cases requiring limited legal input.
Hourly Rates:
Our rates vary depending on the complexity of your case and the seniority of the solicitor handling it. Typically:
- Directors/Senior Solicitor: £375–£310 per hour plus VAT.
- Associate/Junior Solicitor: £255–£198 per hour plus VAT.
Fixed Fees
Fixed fees provide certainty by setting a clear, agreed price for specific stages of your employment tribunal case. This option eliminates surprises and allows for better financial planning.
Key Features:
- Cost Certainty: Know exactly what you’ll pay for each stage of the process.
- Transparent Pricing: Receive a written agreement outlining the scope of work and associated costs.
Tailored Packages: We can provide fixed fees for:
- Initial advice and assessment;
- Drafting a claim or response; and
- Representation at a hearing.
Who is it for?
- Individuals or businesses looking for predictable legal costs.
- Cases with clearly defined tasks or stages.
Damages-Based Agreement (No Win, No Fee)
A Damages-Based Agreement (DBA) is a type of no win, no fee arrangement where you pay a percentage of the compensation recovered if your claim is successful. If you lose, you do not pay your solicitor's fees for the case. This is only available to Claimants in Employment Tribunal disputes.
Key Features:
- No Upfront Costs: Start your case without paying legal fees.
- Success-Driven Fees: Our fees are contingent on winning your case.
- Fair Compensation Sharing: The percentage is agreed upon upfront and capped under the law (usually up to 35%).
Who is it for?
- Employees with strong claims seeking financial protection against upfront legal costs. We would charge to assess the strengths of any claims we are requested to take on under a damages based agreement.
Example:
If you win a £50,000 award and the agreed fee is 35%*, our fees would be £17,500 inclusive of VAT, leaving you with £32,500. 35% is the current maximum we can charge under a damages based agreement for employment disputes.
Legal Expenses Insurance (LEI)
Many people and businesses are unaware that they already have Legal Expenses Insurance (LEI) as part of their home, business, or employment insurance policies. This coverage can help pay for legal costs associated with employment tribunal disputes.
Key Features:
- Pre-Existing Coverage: Often included as an add-on in existing insurance policies.
- Comprehensive Protection: Covers legal advice, representation, and associated costs.
- Eligibility: Policies typically require the case to have reasonable prospects of success.
How to Check:
- Review your home or business insurance policies.
- Contact your insurance provider to confirm LEI coverage.
Who is it for?
- Individuals or businesses who already have LEI and want to minimize out-of-pocket expenses.
Third Party Funding
Third party funding is an arrangement whereby a professional funder or investor finances all or part of a party's legal costs. In exchange for providing this funding, the investor will take an agreed share of the claim proceeds in the event of success. However, if the case fails, the funder loses its investment and is not entitled to receive any payment. Third party funding is relatively uncommon in employment cases, but is growing in popularity as a means of funding civil litigation.
Crowdfunding
Crowdfunding has increasingly become a way for claimants to fund the bringing of claims that are of topical interest to a wider group. For example, in recent years employees with gender critical beliefs, such as Maya Forstater, have funded their claims via crowdfunding websites such as Crowd Justice.
Trade Union Funding
Trade unions typically provide legal advice and support to their employee members, often for no charge, depending on the nature of the dispute. However, trade union funding may be restricted to certain types or classes of dispute and there may be costs attached to the provision of funding.
Equality and Human Rights Commission
Funding for discrimination claims may be available from the Equality and Human Rights Commission (EHRC) in limited circumstances. The EHRC has its own funding criteria which vary from time to time. Cases will usually need to set a precedent for the greater benefit of particular classes of employees before they can attract support from the EHRC.
Legal Aid
Public funding (legal aid) in employment tribunal cases has for many years been largely limited and funding is only available to those who meet certain means test criteria. There is a mandatory telephone gateway through which anyone seeking legal aid issue has to go, before being referred to a solicitor who holds a contract with the Legal Aid Agency to carry out discrimination work.
Public funding for employment matters has been restricted to discrimination claims only. Witan Solicitors does not hold a Legal Aid Franchise and therefore we cannot assist individuals who wish to fund their claim through Legal Aid.
Assistance for Litigants in Person
Through the Legal Support for Litigants in Person grant (LSLIP), the Ministry of Justice funds a number of regional and local partnerships with organisations such as Citizens Advice and law centres, that work with litigants in person, including in employment and discrimination cases.
The assistance available can include pre-tribunal advice and guidance, as well as legal advice and representation at tribunal.
Choosing the Right Option for Your Needs
Funding an employment tribunal dispute doesn’t have to be stressful. Each method has its advantages, and the best choice depends on your financial circumstances and the specifics of your case. During an initial consultation, our expert solicitors can guide you through these options, ensuring you find the most suitable funding arrangement.
Why Choose Witan Solicitors?
- Expertise in Employment Law: Our experienced team handles complex employment disputes for both employees and employers.
- Transparent Pricing: We provide clear, upfront costs tailored to your case.
- Flexible Funding: Whether you prefer hourly rates, fixed fees, or a no-win, no-fee agreement, we have a solution for you.