Employment law SOS: Funding the cost of action against an employer

1 min read

Q I want to bring a case against my former employer for constructive dismissal, but I'm concerned about the price tag. Can you explain ways I might fund my legal costs?

There are a number of different ways you might be able to fund an employment tribunal claim.

Some solicitors offer 'no win, no fee' arrangements where, if you win your case, the solicitor takes an agreed percentage of your compensation payment (or settlement payment if there is one), but if you lose, there are generally no legal costs to be paid.

Another option would be a 'conditional fee' arrangement with a solicitor where, if you win your case, the solicitor charges their standard costs plus an additional "success fee" (up to 100% of their standard costs), but if you lose, there are either no or reduced legal costs to pay.

The use of 'no win, no fee' and 'conditional fee' arrangements are subject to specific rules and regulations.

It would be worth checking whether you have legal expenses insurance for tribunal claims included as part of any insurance policy you hold.

Where this is included, insurers often agree to fund some or all of an individual's tribunal claim if they believe there is a good chance it will be successful. Alternatively, if you are a member of a trade union, it may be willing to fund your claim.

You should be aware that you do not actually have to be legally represented in a tribunal claim and, in fact, you are free to represent yourself during the process if you want to.

As well as any legal costs involved, you should bear in mind that a fee must now be paid to issue a tribunal claim (£250 for a constructive dismissal claim) and another fee must be paid before a final hearing is held (£950 for constructive dismissal), unless you qualify for a waiver of the fees.