Employment
May 2009 Research into the Enforcement of Awards in Employment Tribunals
Research published in May 2009 by the Ministry of Justice.
A sample of 1,002 claimants was interviewed. It was found that 39% of claimants had not received their award. Just over half (53%) had been paid in full and a further 8% had been paid in part.
The findings show that it is factors related to the employer and type of employment that have an impact on the likelihood of payment being made in full, rather than demographic factors of the claimant such as age, gender or ethnicity. The lack of awareness about county court options was reflected in the overall awareness of proceedings should the employer decide not to pay. Only one third (37%) of claimants who had not been paid in full agreed that they knew what the options available were should this circumstance arise. ‘This indicates that there may be a need for increased education or awareness raising of not only the county court pathway, but also other non-litigious options that may be available.’ The findings will be used to help MOJ gain a greater understanding of issues that claimants have faced in getting their awards paid and through this enable them to assess whether, and how, the Employment Tribunal could assist.
The research was carried out by Lorna Adams, Ashley Moore, Katie Gore and Joni Browne for IFF Research Ltd. A copy can be downloaded here: Enforcement_of_employment_tribunal_awards_May_09.pdf
Crown Copyright ISBN: 978 1 84099 226 7
December 2008 Damage-Based Contingency Fees in Employment
Damage-Based Contingency Fees in Employment Cases: A Survey of Practitioners by Richard Moorhead and Rebecca Cumming from Cardiff Law School was published in 2008.
The report examines the impact of “no win, no fee” agreements in employment cases.
The researchers interviewed 191 employment practitioners, 164 solicitors and 23 Claims Management Consultants, about their use of “damage-based contingency fees” (DBCF). This is where a lawyer agrees to act on behalf of a client in return for a fee based on a percentage, often between 30% and 40%, of the damages recovered or awarded to a client if they win. Commonly, the lawyer is not paid anything if the client loses.
The 170-page report examines the advantages and disadvantages of DBCFs and, in particular, considers the conflicts of interest that can arise between client and adviser under a DBCF. Their findings, some of which are relevant to the debate on fixed fees, include:
• DBCFs appear to be used only by practitioners who represent applicants
• “DBCFs have probably made a modest contribution to increasing access to justice in employment cases ensuring that some applicants have access to advice and representation when they would otherwise not be able to afford it” (p4)
• “Any contribution to access to justice is not uniform: lower value claims and claims with high levels of risk or cost associated with them are less likely to be brought."(p4)
• in deciding whether to offer DBCF, practitioners took into account case type, prospects of success, likely case value, case duration, likelihood of settlement, predicted hearing length, case complexity and client characteristics (p80–90)
• DBCFs appear to encourage earlier settlement of cases (p5) and some respondent representatives take advantage of this (p109)
• Within the research sample, “the level of specialist resources devoted to assisting and representing employers is roughly three times of that devoted to employees” (page 4)
The report authors are currently researching the client viewpoint on these agreements.
A copy is here: Contingency_Fees_in_Employment_Cases_2008_.pdf
Ref: ISBN 978-0-9558097-2-9
November 2008 Damage-based Contingency Fees in Employment Cases
A survey of practitioners carried out in 2008 by Richard Moorhead and Rebecca Cumming at Cardiff Law School.
This survey examines the impact of “no win, no fee” agreements in employment cases. The 170-page report examines the advantages and disadvantages of DBCFs and, in particular, considers the conflicts of interest that can arise between client and adviser under a DBCF. Their findings, some of which are relevant to the debate on fixed fees, include:
A copy can be downloaded here: Damage_Based_Contingency_Fees_09.pdf
Cardiff Law School Research Papers: Cardiff Research Papers
August 2007 LCF Response the DTI June 2007
Law Centres Federation Employment Working Party response to the DTI’s Dispute Resolution Review in June 2007
LCF_Response_to_DTI_Supplementary_Review_06.07.doc
November 1998 Employment Rights - The Case for a Community Legal Service
Paper written by the Law Centres Federation’s Employment Working Party in 1998. The paper sets out the need for Employment Advice, failings of the current system and proposals.
LCF_Employment_Rights_The_case_for_a_CLS_11.98.doc
