Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

CompensationEmployment lawLatest NewsEmployment tribunalsPay & benefits

No-win no-fee tribunal claim controls edge closer

by John Charlton 3 Jul 2009
by John Charlton 3 Jul 2009

Further details of the Ministry of Justice’s (MoJ) plans to curb and control no-win no-fee arrangements in employment tribunal claims were given this week.


The ministry plans to give the Lord Chancellor the power, via additions to the Coroners and Justice Bill currently before Parliament, to regulate damages-based contingency fees, where employment lawyers take a percentage of awards made to successful claimants.


Initial proposals include:




  • A cap on the percentage of damages that can be recovered by claimants’ legal reprsentatives.


  • A requirement that representatives provide claimants with clear information on costs.


  • A requirement that claimants are told about other methods of funding their actions.

Justice Secretary Jack Straw said: “Unregulated contingency fee arrangements expose claimants to unfair terms and conditions being imposed by those representing them, which could lead to huge slices being taken out of their damages. The measures announced by the government seek to redress this, offering proper regulation to protect the interests of consumers.”


The regulations will be drafted after a consultation period which ends 25 September. The MoJ has asked the legal profession and other interested parties, such as the TUC and the CBI, to provide input, though it said “anyone with an interest can express their views.”


The country’s most high profile no-win no-fee lawyer Stefan Cross, who handles thousands of equal pay claims, told our sister title Employers’ Law that the MoJ’s plans were “a nasty piece of work designed to drive us out of business”. He said he believes the MoJ is yielding to trade union pressure.


“The consequences could be that those who don’t have access to unions will be denied legal representation,” he added.


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Damages-based agreements (DBA) can result in charges, according to the MoJ’s consultation document, ranging from 10% to 50%. A 2008 study by professor Richard Moorhead, Damages-Based Contingency Fees in Employment Cases: A Survey of Practitioners, found the mean fee charged is 31% to 33%.


Nw regulations could also see other DBA features such as penalties for early exits being banned.

John Charlton

previous post
Rok wins award for digital media communication of benefits
next post
Finance and accounts staff salary trends

You may also like

Which employers offer equal parental leave?

16 Sep 2025

Staff prioritise work-life balance and boundaries – research

16 Sep 2025

Personnel Today Awards 2025 shortlist: HR team of...

16 Sep 2025

Thousands of jobs to be created in nuclear...

15 Sep 2025

Judge in Supreme Court ruling said he’d ‘take...

15 Sep 2025

A third of UK employers use ‘bossware’ to...

15 Sep 2025

Employment lawyers voice AI fears on tribunal claims

15 Sep 2025

Day one rights to make 86% more cautious...

14 Sep 2025

Barclays Bank boss warns Reeves over public sector...

12 Sep 2025

MPs probe Asda financial links with workplace lender

12 Sep 2025

  • Workplace health benefits need to be simplified SPONSORED | Long-term sickness...Read more
  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits Live
Employee Benefits
Forum for Expatriate Management
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise