The Essentials of No Win No Fee Agreements
The aim of any agreement between a client and a lawyer is to specify the terms upon which the lawyer will be paid. The advantage of no win no fee agreements is that the client does not have any up front or on-going fees which he or she would need to pay to the lawyer. Rather, the lawyer agrees to take on the case and be paid at the end if they win the case. However, a no win no fee agreement may include additional clauses to cover what may happen in the case in which the matter is lost.
These agreements are popular in many industries, particularly amongst personal injury lawyers, and provide a valuable option for people who may not be able to afford legal fees in the normal way.
In general terms , under a No Win No Fee agreement, the client agrees that, if the client is unsuccessful in the case, then the client is not obliged to pay any costs. On the other hand, if the case is successful, the client agrees to pay the lawyer a certain percentage of his or her award in costs.
In Australia, there is a wide range of law practices that offer this facility to clients. Indeed, you can now find dedicated websites for personal injury claims. However, the use of No Win No Fee arrangements has been pushed out beyond personal injury claims. Indeed, these agreements have been piloted by a small number of commercial law firms and it is possible that this growth could be significant in the future.
Employment Law: Why Opt for a No Win No Fee Lawyer?
Some cases in employment law lend themselves to representation on a no win no fee basis. This may be the case even where an employment law case does not fall squarely within personal injury categories like unfair dismissal and workplace discrimination.
The general rule is that you can only recover your costs in Employment Tribunal or Court proceedings if you win your case, and your opponent is ordered to pay them. You may also recover your costs if you bring an application against your employer during the course of those proceedings. This is subject to various conditions which can make it risky to bring your case at all. A barrister who accepts a case on a no win no fee basis will only be able to recover some or all of his or her costs from you in the event that they succeed in the action. Conversely, if you bring a claim and are unsuccessful, then you will not have to pay your barrister’s fees at all. Some employment law cases do not offer adequate protection for the potential exposure on the legal costs front. Awards of costs in employment cases are generally relatively small. It is therefore often economically unviable for an aggrieved employee to bring his or her claim in employment law. In recent years, this has led to greater awareness of the availability, in appropriate cases, of funding agreements whereby a particular legal and a particular lay representation agree to share the risk of success or failure in such a way that it is more affordable for the lay person to take proceedings in the Employment Tribunal or the Employment Appeal Tribunal. This type of agreement can be very sensible when the bare facts of the case are such that, although the lay person would prefer that they qualify for legal aid or would have to mortgage their house to fund the cost of their case if they did not have the benefit of this type of arrangement, the reality is that they would win their case in the event that it was pursued.
Types of Employment Law Cases Suitable for No Win No Fee Lawyers
There are many types of employment law cases that lend themselves to no win no fee arrangements. Some of the most common types of cases handled in this manner include wrongful dismissal, wage/hour disputes, retaliation claims, and discrimination claims. Given the emotional and financial impact that such claims can have, these are exactly the kinds of cases that no win no fee lawyers are suited to handle.
In wrongful dismissal cases, for example, a no win no fee lawyer can discharge to his or her client the anxiety that comes with not knowing whether the lawyer will be able to obtain compensation sufficient to cover the costs of bringing the lawsuit. Where an employee has been wrongfully dismissed from his or her position, he or she faces the difficult task of trying to find work in an economy with many employers who will be searching for someone with more experience or qualifications or, at the very least, at a higher salary than the employee was able to earn in his or her previous position. There is certainly an economic gap between what the employee was earning in his or her previous position, and what the employee will have to settle for in his or her new position. A wrongful dismissal lawsuit can help close that gap and provide the employee with not only a second chance at his or her career, but also give him or her a fighting chance in the competitive economy we face today.
In the case of wage and hour disputes, what most people do not realize is that the labour laws in each province provide for interest as part of the compensation to be paid to an employee who is owed wages. Plaintiffs who are wrongfully dismissed are also entitled to interest but with interest rates at 5% – 6% per annum, interest does not add substantially to the amount of the damages award, particularly where the claim is for wrongful dismissal or wages earned in the past year or less. Wage and hour claims, on the other hand, tend to involve amounts of unpaid wages that go back further than a year. Employees who have not received certain wages may be paid those wages, as well as interest on those wages, going back far more than a year. It is for this reason that no win no fee arrangements may be well suited to wage and hour claims. Further, where the employer in a wage and hour claim has failed to pay wages to a number of employees, or has otherwise violated the wage and hour laws, the plaintiff employee may be able to secure the payment of penalties or additional damages as well. Also for this reason, such cases may be well suited to no win no fee arrangements.
Data shows that the majority of decisions made by the Canadian Human Rights Tribunal (the "Tribunal") are made in favour of the complaining employees. The cases that fail are those which were clearly without merit, or where the Tribunal cannot prove discrimination or a violation of human rights legislation was committed. Recently, there has been an increase in the number of cases involving cases of background checks by potential employers. In a case decided recently, the Tribunal ordered that the applicant was discriminated against on the basis of national origin because the prospective employer’s background check policy disproportionately affected immigrants, and because the questions asked did not have any demonstrable connection with the job that the applicant was seeking, but rather affirmed stereotypes about immigrants. There is no question that the emotional and financial impact of being refused employment on basis of one’s background puts employees in a position where they may be willing to enter into a no win no fee arrangement.
How to Locate a Trustworthy No Win No Fee Employment Lawyer
To locate a reliable no win no fee employment lawyer, start by conducting thorough research online. Browse through the websites of various law firms specializing in employment law and no win no fee arrangements. Pay attention to their credentials and areas of expertise. For instance, if you have a claim for wrongful termination, it is essential to find a lawyer with significant experience in this area. Additionally, examine client testimonials and reviews to gauge customer satisfaction. While some reviews may not always reflect the quality of service, a majority of glowing feedback is a good sign of a reputable no win no fee employment lawyer. Furthermore, consider asking your family and friends for any potential leads. Recommendations from people you trust can go a long way in finding a reliable lawyer. Once you have narrowed down your list to a few potential candidates , call them to schedule an appointment. During your meeting, inquire about their previous experience and what credentials they possess. This step is crucial to avoid regretting your choice later on. Another important question to ask is how long they predict your case will take. This will allow you to determine if this lawyer’s expectations align with yours. You can also use your first meeting to evaluate your rapport with the lawyer. There’s no need to stress over small details in your first meeting; just trust that they will work hard for you. In addition, don’t hesitate to ask about any extra fees or charges not mentioned in the contract. Good lawyers will always be transparent about their fees to avoid any hidden charges later on.
No Win No Fee in Employment: Common Myths and Misunderstandings
When researching no win no fee lawyers, it’s important to understand potential downfalls, as well as the process, fee structures and more. One of the common misunderstandings that people have is about exactly what the term no win no fee means. It relates to when you agree not to pay your lawyer anything if they lose. Meanwhile, you are responsible for paying the lawyers’ fees and other costs if you win your case. There are exceptions to this term such as fraud with the purpose of employment or personal injury claims.
Another common misunderstanding about this arrangement is that you can’t choose your lawyer, and must go with a matching service. This is not true either; you can go with anyone you like. The sites that offer to match you with lawyers in their network are free and do not affect the amount a lawyer charges. It’s basically just an easy referral system.
Some people also think the no win no fee agreement means the lawyer has more motivation to win than they would under any other circumstances. A lawyer is actually legally obligated to act in your best interest, and will lose their license to practice if they are not acting that way or charge you a fee that isn’t upfront.
Many people also believe there are hidden fees. If a lawyer was charging you without you knowing the amount all along, or didn’t make it clear, they could face penalties, jail time and loss of livelihood and reputation. Therefore, they are legally obligated to be crystal clear about how they’ll charge you.
Case Studies: Winning with No Win No Fee Lawyers
In the world of employment law, many individuals have successfully leveraged the power of no win no fee lawyers to navigate complex cases and attain favourable outcomes. These success stories not only highlight the expertise of legal professionals, but also the impact and role that the no win no fee agreements have played in their cases. A prominent case that stands out involved a group of employees who approached us after being subjected to unfair treatment by their employer. The employer had continually paid less than the statutory minimum during the furlough period, despite a promise to follow the government’s latest guidance. As the furlough scheme wound down, so did their employer. Threats of insolvency were floated. The government issued new guidance that said that employers ought only claim the minimum rate for furlough employees; however, they must pay at least 80% of an employee’s normal wage, and not reduced by the minimum furlough rate. Everyone expected the furlough scheme to be replaced by a "new normal" of flexible furlough with greater demands on the employees. They were worried that their employer was going to use this to insist on short hours / short pay. After obtaining clear instructions and evidence from each individual, we conducted an extensive review into their legal rights in the circumstances of the furlough scheme and their individual employment contracts. We entered into no win no fee agreements with each of them and filed claims at the Employment Tribunal.
We were convinced each person had very strong legal claims – that their employer had breached their contracts of employment – but we were aware that one large claim for thousands of pounds due to furlough breach was unlikely to be challenged at final hearing by an insolvent employer. So we issued claims for several thousand pounds each for arguments based on a failure to provide details of their statutory rights in their contracts of employment (known as a Section 1 statement under the Employment Rights Act 1996). These claims, if successful, could be used to offset any unlawful deductions from wages claim and protect against the main risk of a furlough underpayment claim from counterclaim by the employer. Notwithstanding all the legitimate issues that the employees had over their underemployment during furlough, including as impacted by the furlough guidance, our experience was that there was no reason for the employer to attempt anything in defence given the possible penalties it could face. So, one the one hand, we had imminent claims to protect the position, and had very strong claims in terms of normal breach of contract claims for unpaid wages, without full and fair deductions under their employment contracts. On the other, we had an insolvent/insolvant employer. The client’s claim remained an expensive, costly route at risk and even though we were convinced we would win and make up lots of ground quickly, given the employer’s potential insolvency, we were never going to let that happen on our watch . Furthermore, if the claim were allowed to proceed to final hearing, the claimant would still be disadvantaged in securing an award (even if they won it, we could not guarantee it would be paid in full, or even partially so). Here therefore, we reached out to the employer’s insolvency practitioner and agreed to accept a substantial discounted amount with payment in monthly instalments. We secured security payments in a substantially earlier time frame than a final judgment would have provided. In doing so, we allowed the client to get conviction of bringing a just complaint, and the best net recovery of the amounts owed, without the associated risks of a continued fight, lengthy wait and a long pain period. This success story illustrates the impact that no win no fee lawyers can make in employment law and the strength of the agreement. By entering into this type of arrangement, we were able to offer this client high-quality legal services without the associated financial risk that often deters low-income clients from proceeding. This is a true testament to the effectiveness of no win no fee agreements and the positive outcomes that can be attained through such collaboration. Our next case was a large hedge fund that had had to furlough many employees, retaining only a core team to assist with basic administration. Unfortunately, it became clear that some employees had been working their furlough hours, when the expectations had been that they would all have been on furlough, and then essentially laid off (to mirror the job support scheme). Directors were pressuring managers to allow overhours who then directed their staff to increase their regular hours and thus accrue furlough hours. Staff were told to catch up and work weekends (but at flat wage rates, rather than overtime rates). We feared the company was in difficulty and was using this as a way to ensure continuity in the future (rather than in the now). Again, we saw these overhours as being at risk of counterclaim but heeded the same approach as above. The employer offered to pay the furlough rate for the period of overwork but with no reference to the actual hours that were worked based on what it accepted was a back referencing of furlough hours. We accepted this offer as being in good faith but then raised the issue of the position in terms of another type of claim of a failure to provide details of sex equality terms under the Equality Act 2010. If the equality of legal claim was successful then the overpayment recovered above may have been recoverable as less favourable treatment on the basis that the jobholder needed to work additional hours (while the lower paid staff did not) to retain their full salary. Taking such an approach allowed us to secure significant losses over a correspondingly shorter time frame, with certainty (and without the litigation risks) while preserving the more valuable claim to pursue against more value moments.