Contingency Basis in Employment Law Explained
Sometimes, employment lawyers use a “contingency basis” for specific cases. On a contingency fee basis, also known as contingency fee arrangements, you do not have to pay for our legal representation until we successfully secure compensation or damages from your employer. This approach can be particularly beneficial when finances are tight after losing your job or facing the risk of termination.
Cases Suitable for a Contingency Fee Arrangement
However, not all cases are suitable for a contingency basis. Some situations require specific actions by the employer, such as negotiating new terms for continued employment, which may not involve direct financial compensation. Dealing with an insurance company can be challenging, and hiring a lawyer on a contingency basis can alleviate this burden. Here are the types of cases where we typically work on a contingency basis:
- Wrongful Termination Cases: Claims where you have been unjustly fired and are seeking severance or compensation.
- Severance Negotiation and Litigation: Disputes over the adequacy of severance packages.
- Discrimination and Human Rights Cases: Claims involving discrimination, harassment, or violations under human rights legislation.
- Sexual Harassment Cases: Seeking damages for harassment in the workplace.
- Constructive Dismissal Claims: Where you were forced to resign due to intolerable working conditions and are seeking compensation.
- Unpaid Wages and Overtime Claims: Pursuing compensation for unpaid wages or overtime.
If you are unsure whether your case qualifies for a contingency basis, we can provide a phone evaluation based on the specifics of your situation. Whether an employment lawyer can work on a contingency basis will depend on the facts of your case.
Cases Not Typically Suitable for Contingency Fee Agreements
While working on a contingency basis is beneficial in many situations, it is not always the appropriate fee arrangement. Here are some examples of cases that typically do not qualify for a contingency basis:
- Employment Contract Reviews: Reviewing or drafting employment contracts usually does not involve direct monetary recovery and is billed hourly or at a flat rate.
- Consultations and General Legal Advice: Providing advice or consultations is usually a service billed on an hourly basis.
- Workplace Policy Development: Assisting employers in creating or revising workplace policies generally involves a flat fee or hourly billing.
- Labour Relations and Collective Bargaining: Representing parties in collective bargaining or labour disputes does not typically result in a financial recovery and is billed differently.
- Workplace Investigations and Compliance Audits: Conducting audits or investigations is generally billed on an hourly or project basis.
Positives of Using Contingency Fees
The benefits of working on a contingency basis are clear when you don’t have to pay a lawyer upfront. When facing job loss or the risk of losing it, your priority is keeping food on the table for your family and managing legal costs. Dealing with an insurance company can be challenging, and a contingency basis can help clients deal with these challenges without upfront costs. A contingency basis allows you to enforce your entitlements and seek your rights without sacrificing other needs. This arrangement ensures that you can access skilled legal representation without the burden of upfront costs.
Here’s what you gain
- Deferred Payments: You only pay if we win or settle your case.
- More Certainty: Your legal costs are directly tied to the success of your case.
- Reduced Financial Risk: A contingency basis can help alleviate some of the financial worry regarding the costs associated with each phase of the process.
The negotiation and litigation process depends on the strategy of the other side too, so you need lawyers who can use the litigation steps available to speed up the recovery of your entitlements. Sometimes, employers want to avoid litigation and offer a settlement quickly. Other times, they may stand firm, preferring to fight the matter out. A lawyer working on a contingency basis can help reduce the worry regarding the steps and legal fees associated with each phase of the process.
Potential Negatives of Contingent Fees
There are situations where an employer may quickly agree to a settlement. In these scenarios, after just one letter from our employment lawyers, you may receive a good offer that you’d consider accepting. In such cases, the amount of work put in may be minimal compared to the attorneys fees recovered. Paying by the hour instead of a percentage of the settlement might save you money in these situations.
Conclusion
A contingency basis can be an excellent option for pursuing your rights without risking money upfront, provided your case is suitable. However, sometimes paying by the hour may cost less than paying a percentage of the settlement. Understanding the terms of a contingency fee agreement is crucial to making an informed decision. Ultimately, the decision is up to you, but we are here to help you make the choice that’s best for your situation.
Contact Achkar Law
If you are facing challenges at work or believe your rights have been violated, reach out to us today. Whether it is a wrongful dismissal, discrimination, or another employment issue, our team is ready to assess your case and provide the legal support you need. Understanding your situation is the first step to protecting your rights and securing the outcome you deserve.
Toll-free: 1 (800) 771-7882
Email: [email protected]
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