Over 50 years of experienceMears Hobbs LLP’s practice was established in 1970

We’re a client-focused law teamWe offer a friendly, helpful and Efficient Service

We work for youWe aim to respond to your queries on the same day

Our Fees: Civil Litigation including Employment Matters

No two civil disputes (including employment disputes) are the same.  Some can be settled quickly at modest expense.  Others are far more complicated and can only be resolved by court proceedings.  At all stages, with any proceedings, we will give you an estimate of the fees you will be incurring.

Employment Law fees

This will usually be charged based on an hourly rate. Our hourly rate is between £220 and £250 per hour plus VAT at 20%, depending on the complexity of the matter, but in any event you will be notified of the applicable hourly rate before any work is done.

Fixed fees options may be available in some cases, or in respect of particular pieces of work or stages of a case, but will vary depending on the nature and complexity of the case.

In certain cases we may consider acting for employees on a contingency fee basis (a damages based agreement). In simple terms, a contingency fee agreement is an agreement under which we only charge for the work we carry out if our employee client is successful in their claim or it settles before Tribunal. Usually our fee is 35% of the compensation (or settlement figure) inclusive of VAT at 20%, plus any disbursements such as Counsel fees. If our employee client does not obtain any award at the Tribunal, they would still pay for any disbursements, but we do not charge for any of the work we have done. We would in any case enter into a separate formal written agreement for any contingency fee work.

Employee clients may have Legal Expenses Insurance as part of their car or household contents insurance policy. This type of insurance may cover legal costs for bringing an unfair dismissal or wrongful dismissal claim. Depending on the terms offered by the insurer, we may be able to work under a Legal Expenses Insurance arrangement.

The following information on costs relates to cases concerning unfair dismissal or wrongful dismissal.

Average fees

Because every case is different it is not possible to state what the total cost would be of bring or defending any particular claim. If your case settles before a tribunal claim needs to be issued, our average fees, based on an hourly rate charge, will usually be within the following ranges:

Simple case : £850 – £1,600 plus VAT at 20%

Medium complexity case: £1,2000 – £1,950 plus VAT at 20%

High complexity case: £1,600 – £5,000 plus VAT at 20%

If employment tribunal proceedings are required the fees will depend on the stage that the claim reaches and are likely to fall within the following average ranges (inclusive of the fees set out in the above averages):

Stage of proceedings
Complexity of Case
Shortly after the claim is issued (before a response is filed) During proceedings At a final hearing
Simple Case £1,500 to £2,000 plus VAT at 20% £2,500 to £5,000 plus VAT at 20% £5,500 to £8,000 plus VAT at 20%
Medium complexity £2,500 to £3,000 plus VAT at 20% £3,000 to £7,500 plus VAT at 20% £8,000 to £12,000 plus VAT at 20%
High complexity £4,000 to £5,000 plus VAT at 20% £4,500 to £12,500 plus VAT at 20% £12,000 to £15,000 plus VAT at 20%

These fees do not include disbursements (see below) or work after a tribunal hearing, such as assistance in enforcing a tribunal award, should that be necessary.

The complexity of the case depends on numerous factors, the most significant of which are usually the number of incidents/allegations and over what period, the volume of paperwork involved and the number of potential witnesses.

A simple case would usually involve just one incident/allegation and minimal paperwork

A medium complexity case might have 2 or 3 incidents/allegations and a moderate amount of paperwork

A high complexity case might have several incidents/allegations and a large volume of paperwork.

Constructive unfair dismissal cases are usually, by their nature, more complex and will therefore usually fall within the medium or high complexity ranges.

Factors that could make a case more complex and cause fees to exceed the above estimates:-

  • If it is necessary to make or defend applications to amend claims or to provide further information about an existing claim.
  • Defending claims that are brought by litigants in person.
  • Making or defending a costs application.
  • Complex preliminary issues such as whether the claimant is disabled (if this is not agreed by the parties).
  • If expert evidence is needed.
  • A high number of witnesses.
  • The volume of documentation involved.
  • If it is an automatic unfair dismissal claim e.g. if the claim involves whistleblowing.
  • Allegations of discrimination which are linked to the dismissal.

If the case is primarily a discrimination claim, or any claim other than wrongful or unfair dismissal, the costs are likely to fall outside of the ranges given above.

Disbursements (expenses)

Disbursements are costs related to your matter that are payable to third parties, such as counsel fees or expert’s fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

It may be necessary to engage a barrister (and this will be necessary if hearings are required). Barrister’s fees are usually between £1,000 and £4,000 for a one day hearing (depending on experience) for preparing and representation at the tribunal hearing, with an additional cost of between £750 and £3,000 per additional day of hearing. Barrister’s fees may also be incurred for advice during the process, and/or if any interim hearings are required. The more complex the case, the more barrister’s input is likely to be required. Barrister’s fees will invariably be plus VAT at 20%.

Key stages

Our fees set out above cover all of the work in relation to the following key stages of a claim:

  • Taking your initial instructions, reviewing the documents and advising on the merits and likely compensation (this is likely to be revisited throughout the matter and subject to change).
  • Entering into pre-claim conciliation where this is mandatory to explore whether a settlement can be reached.
  • Preparing claim or response.
  • Reviewing and advising on claim or response from other party.
  • Exploring settlement and negotiating settlement throughout the process.
  • Preparing or considering a schedule of loss.
  • Preparing for (and attending, with Counsel if appropriate) a Preliminary Hearing.
  • Exchanging lists and documents with the other party and agreeing a bundle of documents.
  • Taking witness statements, drafting statements and agreeing their content with witnesses.
  • Preparing bundle of documents.
  • Reviewing and advising on the other party’s witness statements.
  • Agreeing a list of issues, a chronology and/or cast list.
  • Preparation and attendance of Final Hearing, including instructions to Counsel.

The stages set out above are an indication and if some of stages above are not required, the fee may be reduced. You may wish to handle the claim yourself and only have our advice in relation to some of the stages. This can also be arranged on your individual needs. The ranges above assume we are dealing with all matters on your behalf.

How long will my matter take?

The time that it takes from taking your initial instructions to the final resolution of your matter depends largely on the stage at which your case is resolved. If a settlement is reached during pre-claim conciliation, your case is likely to take 6-12 weeks. If your claim proceeds to a Final Hearing, your case is likely to take 6-12 months. This is just an estimate, and we will of course be able to give you a more accurate timescale once we have more information and as the matter progresses.

Debt Recovery Fees

We pride ourselves on exceptional customer care skills enabling you to send out the right message and retain the goodwill of your customers whilst recovering outstanding payments.

We can offer you clear, practical advice and will discuss all the options available to establish the most appropriate way of dealing with debtors. We have tried and tested processes in place to ensure we can recover debts quickly, efficiently and cost-effectively, with transparent fixed fees.

All undisputed debt recovery work is carried out at a fixed rate.

Letter Before Action

Amount of Debt Charge + VAT at 20%
£0-1,000 £150.00 (+ VAT at 20% )
£1000.01 – £4,999.99 £195.00 (+VAT at 20% )
£5,000 – £10,000 £290.00 (+VAT at 20%)
£10,000 – £25,000 £350.00 (+VAT at 20% )
£25,000+ £395.00 (+VAT at 20% )

Letter before action charges are not recoverable from your debtor.

Claim Form

We will commence Court proceedings against your debtor on your behalf.

Amount of Debt Charge [+VAT at 20%] Court Issue Fee Fixed Costs*
Up to £300 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00) £35.00 £50.00
£300.01 – £500 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00) £50.00 £50.00
£500.01 – £1,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00)) £70.00 £70.00
£1,000.01 – £1,500 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00) £80.00 £80.00
£1,500.01 – £3,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00) £115.00 £80.00
£3,000.01 – £5,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00) £205.00 £80.00
£5,000.01 – £15,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00) £455.00 £100.00
£15,000.01 – £50,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00) 5% of the value of the Claim £100.00

 

 

£50,000.01 – £100,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00)
£100,000.01 – £150,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00)
£150,000.01 – £200,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00)
£200,000.01 – £250,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00) £10,0000 £100.00

 

£250,000.01 – £300,000 £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00)
£300,000.01 + £200.00 – £500.00 (+ VAT at 20% – £40.00 – £100.00)
To issue proceedings other than a money claim To be agreed

*Indicates what is recoverable from your debtor. The Court Issue fees shown above are normally also recoverable from the debtor.

To Request Judgment in Default (where the defendant has not filed an Acknowledgment of Service or a Defence)

Amount of

Debt

Default of Acknowledge-

-ment of Service

Charges

Fixed

Costs

Recoverable*

Default of Defence

Charges

Fixed

Costs Recoverable*

£0 – £5,000 £50 + VAT at 20% – £10.00 £22 £50 + VAT at 20% – £10.00 £25
Over £5,000 £50 + VAT at 20% – £10.00 £30 £50 + VAT at 20% – £10.00 £35

*Indicates what is recoverable from your debtor

These costs apply for undisputed outstanding payment of invoice(s).

If the debt is under £10,000 there is a no costs rule which will mean that as a general rule you are unable to recover your costs from the debtor even if you are successful. Fixed costs and Court fee are usually recoverable and are indicated above by a *

You can claim interest and compensation and we will advise you of the applicable rates.

Disputed Debt Recovery (Claims over £10,000)

If during the debt recovery process, the matter becomes disputed or enforcement action is required (where Judgment has been obtained but the amount remains unpaid), we will discuss the change in fees with you and agree a way forward.

Upon a case being defended we will advise as to the merits of that defence and provide a full breakdown of likely costs of continuing the action.

However, to give you an indication of fees, all work will be charged on a time spent basis in accordance with hourly rates. As set out above, the average hourly rate of fee earners in the Commercial Litigation and the Dispute Resolution Team is £240 per hour plus VAT at 20%

Disputed Small Claims matters (matters less than £10,000)

This Firm does however offer a Fixed Fee for the conclusion of small claims matters (whether it be by way of early settlement or determination, Court Judgement or Order or discontinuance).

Claims up to £5,000 – Fixed Fee £2,000 – £3,000 plus VAT at 20% (£400.00 – £600.00) and disbursements *

Claims £5,000 to £10,000 – Fixed Fee £4,000 – £5,000 plus VAT at 20% (£800.00 – £1,000.00) and disbursements *

*Court fee as set out above and barrister fees for attendance at a final hearing (dependent on barrister seniority) usually £285 – £300 plus VAT at 20% (£57.00 – £60.00) for a small claim.

Hearing Fees

Where a matter is disputed and the matter is listed for a hearing, there will also be a hearing fee.

Small Claim Track where the amount claimed is:

  • Claims up to £300 £25
  • Claims between £300.01 and £500 £55
  • Claims between £500.01 and £1,000 £80
  • Claims between £1,000.01 and £1,500 £115
  • Claims between £1,500.01 and £3,000 £170
  • Claims more than £3,000 £335
  • Fast track claims (claims over £10,000) £545
  • Multi track claim (claims over £25,000) £1,090

Time Scales

There is no typical debt recovery timescales. However, to give you an indication a typical debt recovery demand letter provides for a response within 14 days for a company debtor and 30 days for an individual debtor.

Whether we are required to issue a claim and whether the other side pay promptly on receipt of any Judgment issued by a court. As detailed above, if enforcement action is required, we will discuss the fees and timescales involved.

Key Milestones

With every transaction there are key milestones, which may vary according to individual circumstances. Our fee will include these milestones and may be as follows:

  • Taking your instructions and reviewing documentation
  • Undertaking appropriate searches
  • Issuing a letter before action requesting payment from the debtor
  • Receiving payment and sending this on to you
  • Drafting and issuing a claim form to the relevant court if the debt is not paid
  • Applying to the court to enter a Judgment in Default if the debtor fails to respond to court proceedings
  • Contacting the other side to request payment where a Judgment in Default has been issued by the court

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