No Win No Fee in Employment Law What's Really True

Most employment solicitors don't offer true no-win-no-fee. Here's what conditional fee agreements actually cost, and what alternatives exist.

Do employment solicitors really offer no win no fee?

True no-win-no-fee is rare in employment law. Employment tribunals only rarely order the losing side to pay costs, so solicitors usually charge their own client: by the hour, under a conditional fee agreement (CFA) with a success fee if you win, or under a damages-based agreement (DBA) that takes a percentage of what you recover. In employment matters a DBA is capped at 35% of what you recover, including VAT.

What is a conditional fee agreement (CFA)?

A CFA is an agreement that some or all of the solicitor's fees are only payable if your case succeeds. If you win, you may also pay a success fee: an uplift on the solicitor's base costs, which the law caps at 100% of those base costs. It is worked out on costs, not as a share of your award. The terms for what you pay if you lose vary, so always ask for a copy of the CFA in writing before signing.

What's the difference between success fees and uplift?

They are the same thing: the extra percentage a solicitor charges on top of their base costs if you win under a CFA, capped by law at 100% of base costs. A damages-based agreement (DBA) works differently: the solicitor takes a percentage of what you recover. The legal maximum for a DBA is 35% including VAT in employment matters, 25% in personal injury claims and 50% in most other civil claims. Because the tribunal rarely orders the employer to pay your costs, these fees usually come out of your award.

Can I get legal insurance for tribunal costs?

Yes. Some home or pet insurance policies include legal cover that pays for employment solicitors. Check your policy documents. If you have legal expenses insurance, declare it to any solicitor you instructed — they may invoice the insurer directly instead of you.

What should I watch for in a retainer agreement?

Watch for: hidden hourly rates, unclear success fees, who pays disbursements (expert reports, transcripts), liability caps, and what happens if you withdraw. Always ask for a fixed fee quote upfront if possible. Avoid open-ended retainers. Get everything in writing.

Is Start My Claim cheaper than a solicitor?

Start My Claim costs a one-time fee to build your ET1 and guide you through the claim. A solicitor typically charges hundreds per hour or a hefty success fee. Self-representing with Start My Claim is cheapest if your case is straightforward, but a solicitor adds value for complex discrimination or high-value claims.

When is a solicitor genuinely worth the cost?

A solicitor adds value if: your claim involves discrimination (requires detailed pleading), you're facing multiple respondents, the claim is high-value (over £50k), the respondent has legal representation, or you have complex evidence to manage. Straightforward unfair dismissal with clear evidence? You can self-represent.

What are McKenzie friends and how do they compare?

McKenzie friends are unpaid (or paid) advisors who help you in the tribunal but don't represent you in court. They take notes, advise quietly, but can't address the tribunal. They're free or cheap, but not as qualified as solicitors. Start My Claim is self-help software — you drive the case yourself.

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No Win No Fee in Employment Law What's Really True

Typical tribunal timeline

Legal maximum for a damages-based agreement in employment claims, including VAT

Average solicitor hourly rate

Why True No-Win-No-Fee Doesn't Exist in Employment Tribunal

In personal injury law, solicitors can recover costs from the losing defendant under the "loser pays" rule. Employment tribunals work differently. The tribunal only rarely awards costs against the losing party — usually only if the claim was vexatious, abusive, or you unreasonably refused settlement. This means solicitors cannot rely on recovering fees from the employer.

Result: employment solicitors must charge upfront or use conditional fee agreements (CFAs) where you pay success fees if you win. There is no true "free unless you lose" model like in injury claims.

What Does "No Win No Fee" Actually Mean?

When an employment solicitor advertises "no win no fee", they usually mean one of these:

• 1. Conditional Fee Agreement (CFA) — You pay the solicitor's basic hourly rate only if you lose (which they may write off). If you win, you pay base costs plus a success fee, which is a percentage uplift on those base costs (the law caps it at 100% of them).
• 2. After-the-Event (ATE) Insurance — You take out insurance to cover the solicitor's costs if you lose. You pay a premium upfront (£500–£5k depending on claim value). If you lose, the insurance pays. If you win, you recover costs from the employer only if the tribunal awards them.
• 3. Damages-Based Agreement (DBA) — You pay nothing upfront. If you win, the solicitor takes a percentage of what you recover. For employment claims the law caps this at 35% of what you recover, including VAT. (The caps are 25% for personal injury claims and 50% for most other civil claims.)

How Conditional Fee Agreements (CFAs) Work

A CFA is a binding contract between you and the solicitor. Here's what typically happens:

You pay the solicitor's basic hourly rate (typically £200–£400/hr), or the solicitor writes it off as a loss. Either way, you're liable for the solicitor's own costs. Many solicitors will not pursue payment if they've agreed to carry the loss.

You pay the solicitor's base costs plus a success fee uplift on those costs (up to 100% of them). The tribunal rarely orders the losing employer to pay your legal costs in full, so you absorb the shortfall.

Expert reports, transcripts, and barrister fees are often charged separately and due regardless of outcome. (Employment Tribunal fees were abolished in 2017 — claimants don't pay to file or attend.) Always clarify who pays disbursements upfront.

What to Watch For in a CFA Retainer

Before signing any retainer agreement with a solicitor, ask for clarity on these points:

• ✓ Base hourly rate — What do you pay if the case is lost or settled before trial?
• ✓ Success fee percentage — Under a CFA, what is the uplift on base costs? Under a DBA, what share of your award will you pay? In employment claims a DBA cannot exceed 35%, including VAT.
• ✓ Disbursements — Who pays expert reports, barrister fees, and transcripts upfront? (Tribunal fees themselves were abolished in 2017.)
• ✓ Liability cap — Can the solicitor limit their liability if something goes wrong?
• ✓ Withdrawal clause — Can you end the agreement? What happens if you do?
• ✓ After-the-Event insurance — Does the solicitor require you to take out ATE insurance? Who pays the premium?
• ✓ Conflict of interest — Will the solicitor work solely for you, or do they also advise the insurance company?

Alternatives to Solicitors

If you can't afford a solicitor or the costs are too high, you have options:

Start My Claim (Self-Help Tool)

Build your ET1, track deadlines, and manage your claim yourself at a fraction of solicitor costs. Best for straightforward unfair dismissal or wage claims with clear evidence.

Unpaid or low-cost advisors who help you prepare but don't represent you in tribunal. Good for support and note-taking without full legal costs.

Free mediation service. Acas advisors help negotiate settlements before or after tribunal. Can save thousands in legal costs and court time.

Free or low-cost legal advice from qualified advisors. Available in some regions. Check your local Citizens Advice Bureau.

Trade Union Representation

If you're a union member (Unite, GMB, Unison, NEU, etc.), your union may provide free legal advice and representation at tribunal. Check your membership benefits.

When a Solicitor Really Adds Value

A solicitor is worth the cost if:

• → Discrimination claim — Requires detailed pleading, understanding of burden of proof, and evidence of comparators. Errors are costly.
• → High-value claim — Over £50k. The solicitor's success fee is justified by the larger award.
• → Multiple respondents — Complex claims with several employers or contractors. Requires careful liability analysis.
• → Respondent has legal representation — Most employers use solicitors at tribunal. This is the norm, not the exception. Employment judges are experienced with self-represented claimants and the system is designed to be fair to both sides. Preparation and evidence matter far more than having a lawyer.
• → Complex evidence — Your case involves emails, witness statements, expert reports, or financial records requiring expert management.
• → Settlement negotiation — A solicitor can negotiate on your behalf without emotion and ensure the settlement agreement protects you.

For straightforward unfair dismissal with clear evidence (dismissal letter, witness statements, no legal complexity)? Self-representing with Start My Claim is usually cheaper and just as effective.

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Your claim, estimated

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Sources: Employment Rights Act 1996 · ACAS guidance · GOV.UK Employment Tribunals