Legal fees for drafting settlement agreement

It is important that organisations appoint service providers, such as lawyers, that suit their business and with whom they can forge a longer term association. With that in mind we offer a free consultation so that you can get to know us.

We work closely with our corporate clients to ensure good practices are in place to minimise the risk of claims. However, should your organisation be presented with a claim, then the following details are informative.

For most instructions our normal method of charging is by reference to the time spent on the matter. Our compact size means that our rates compare favourably with larger central London practices and our hourly charge rate is £180 plus disbursements (such as barristers’ fees and expenses as relevant to the case).

The time spent on your matter is recorded by Aeon Solicitors, and a time excerpt summarising the work undertaken always accompanies our invoices.

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Example costs in an employment tribunal case

If an employee or former employee raises a claim they will usually send your business a letter framing their complaint and indicating that they intend to take matters further within a fixed number of days. If matters are not resolved, then the typical next step is for the individual to contact ACAS. ACAS will contact your businesses to invite you into early conciliation with a view to resolving matters.

If early conciliation is unsuccessful, then the next step may see the individual commence their claim in the employment tribunal.

There are two claims that are routinely progressed by employees in the employment tribunal; they are (1) breach of the terms of the employment contract or wrongful dismissal and (2) for unfair dismissal.

Aeon Solicitors’ legal fees for representing businesses to defend claims of wrongful dismissal and unfair dismissal, will fall within the following range of costs.

Straight forward case: £25,000 to £38,000,

Mediumly complex case: £35,000 to £50,000,

Highly complex case: £45,000 and over.

Disbursements are costs relating to the case that are payable to third parties, for example court fees or barristers’ fees for representing you at the tribunal hearings. Aeon Solicitors handles the payment of disbursements to ensure no delay in securing services, and the cost of disbursements will appear on your invoice without inflation.

Factors that could make a case more complex:

If it is necessary to make applications to amend or provide further information about your claim
the number of witnesses and documents if there is an automatic unfair dismissal claim, for example if the former employer dismissed because you ‘blew the whistle’ if there are other claims, such as your claim of discrimination making or defending an application for payment of legal costs (usually there is no award of legal costs, as each party has to pay their own legal fees)

If it becomes necessary to defend applications by the claimant to amend their claim
Defending claims that are brought by litigants in person (neither party is obliged to be represented in the employment tribunal and the claimant may choose to put their own case and in that situation are referred to as a ‘litigant in person’)
The number of witnesses and documents

If it is an automatic unfair dismissal claim (for example, a dismissal because the employee made a protected disclosure)
If there are any other claims, for example allegations of discrimination
Making or defending an application for payment of legal costs (usually there is no award of legal costs, as each party has to pay their own legal fees)

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Key stages in tribunal

The 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 papers and advising you on the merits of the defence (this has to be revisited throughout the matter and is subject to change as the case progresses)
Entering into early conciliation (before the individual has filed papers at the employment tribunal they have to enter into early conciliation with ACAS) to explore whether a settlement between the parties can be reached and litigation avoided
If no early resolution, then reviewing the claim that the claimant lodges at the employment tribunal and advising on the way forward
Preparing the response to the claim
Considering the claimant’s schedule of loss (that is, the claimant’s assessment of the damages due)
Preparing for and attending a preliminary hearing

Exchanging documents with the claimant and agreeing a bundle of documents
Taking statements from the organisation’s witnesses
Preparing bundle of documents
Having exchanged documents with the other side, reviewing and advising on the claimant’s witness statement
Agreeing a list of issues and a chronology
Preparation and attendance at final hearing, including instructions to Counsel
Exploring settlement and negotiating settlement throughout the process

How long will the case last?

The time that it takes from taking your initial instruction to the final resolution of your case depends largely on the stage at which your case is resolved.

If a settlement is reached during early conciliation with ACAS, your case is likely to take between 3 to 6 weeks.

If the case proceeds to a final hearing in an employment tribunal, it is likely to take 5 to 10 months. This is just an estimate and we will be able to give you a more accurate timescale once we have more information and as the matter progresses.

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Get in touch to discuss fixed costs for drafting a settlement agreement.

When are they used? What is in them? Use our guide to understand more about settlement agreements

Depends on a variety of factors. We will advise about the particulars of your situation and explain how much compensation is appropriate

Is a settlement agreement offered when employees are redundant? Find out more on our redundancy pages

We seek to address your legal needs in a way that suits you. For certain matters we can offer a fixed fee arrangement. Learn more about costs with Aeon settlements

Discover more about the terms that the employer will include in the settlement agreement.

“ Thank you for everything: your professionalism, responsiveness and wise counsel. You were simply brilliant! “
“ Have just collected the signed papers - thank you again for your excellent service and support. “
“ I know I’ve said it already but many thanks for all your work, help and support with the offer! If any of my friends or colleagues ever have to go through this I will make sure Irecommend you to them. You’ve been amazing! “
“ Your help and advice much appreciated, and for being so approachable. “
“ Thank you so much for all your help with my settlement and for the support over the past couple of weeks – I couldn’t have done it without you “
“ Thank you for everything you did to get my settlement agreement done and dusted. Your advice made what could have been a very stressful time much more manageable “
“ Many thanks for your help with my redundancy settlement. My colleagues have spoken highly of you as well. “
“ Thank you so much for your help during a stressful time – it’s not easy dealing with a former company but you were very supportive and helped at each step of the process. “

Business costs

Example costs in an employment tribunal case

Factors that could make a case more complex:

Key stages in tribunal

How long will the case last?