There is increasing concern about the use of Damages Based Agreements, particularly in Employment Tribunals. Under a typical DBA, claimants are represented at Employment Tribunals by a person (who may or may not be legally qualified) whose reward for conducting the claim is a percentage of the damages or award.
The concern is not so much with the principle as with failures to tell claimants of other ways of conducting their claims and with terms which are unclear about the fee arrangements and other conditions.
The Government proposes to legislate to control DBAs, aiming to introduce regulations as to:
- the provision of clear and transparent information on costs and expenses and on alternative methods of funding
- the maximum percentage of awards which can be taken as fees
- the use of unfair terms and conditions such as penalty and exit terms and settlement clauses.
There is a consultation paper and a list of question for response on the Ministry of Justice web site. The consultation closes on 25 September 2009.
Ambrose Appelbe represents both employers and employers at Employment Tribunals or, preferably, in discussions and mediations which avoid the need to go to a Tribunal at all. Contact Andrew Penfold or Felix Appelbe on 020 7242 7000 to find out how we might help you.
