May 2009:
Concerns raised over government employment tribunal proposals
The Law Society has expressed serious apprehension over Ministry of Justice proposals outlining new regulations concerning the governing of damages-based contingency fee agreements normally used in employment tribunal proceedings.
A spokesperson for the Law Society described the mood as “very concerned” that the government didn’t first seek a full consultation before marching forward. The fact that the issues the Ministry of Justice is attempting to address could be dealt with by a more effective implementation of existing rules was also described as “notable”.
The controversial proposals include a cap on the percentage of damages available for recovery by legal agents and the specific requirement that representatives deliver clear and transparent information on costs to claimants.
"We agree that contingency fees give rise to a number of issues but they also provide significant access to justice for people who could not otherwise afford to bring claims," the Law Society representative continued.
Extending the powers of the Claims Management Regulator in respect of non-solicitor advisers was suggested as an appropriate solution.