Solicitors bill

themull1

Husband made redundant, his employer said we had to get a solicitor to look over terms and they would pay £280 plus VAT. We got a solicitor and they said the money from employer was enough to cover costs.

There was a bit of tooing and frowing with our solicitor, employers solicitor and husband, solicitor copied us in with all emails etc, solicitor even asking husbands employer for more money(£70 plus VAT) as there were more emails etc than first thought. His employer agreed.

Out of the blue, they have sent us an invoice for £795 less what employer had paid, and said it must be paid within 14 days.

Surely they would have asked us in advance, or
notified us if we were going to be charged? Can we challenge this? The settlement was approx two grand.

sangie595

That seems like a vast amount for a settlement agreement. Surely they must have put something in writing about fees? In the end, they worked for you, not the employer, so there must have been something that set out the terms of their work and the extent of fees?

themull1

No, husband rang them, explained what his employer had sent him, and how much they were willing to pay for solicitor to check redundancy payout, and solicitor was fine with that, at no time did they ever say to my husband he might have to pay anything, or my husband would have just gone somewhere else. The solicitor asked employer for 70 more plus vat, and we assumed that was the full payment as we were;t told anything.

TadleyBaggie

£280+vat isn't generous, the solicitor I used for a settlement agreement cost £250+vat per hour. They told me that fees would be capped at £500+vat, which happened to be what my ex-employer was prepared to pay.

Then out of the blue I received a bill from the solicitor for £350 or so. They claimed that this was because of extra work (a couple phone calls, if that). Luckily I had the statement about the fee being capped in writing, so they backed down and waived the whole amount.

Undervalued

TadleyBaggie wrote: »

£280+vat isn't generous, the solicitor I used for a settlement agreement cost £250+vat per hour. They told me that fees would be capped at £500+vat, which happened to be what my ex-employer was prepared to pay.

Then out of the blue I received a bill from the solicitor for £350 or so. They claimed that this was because of extra work (a couple phone calls, if that). Luckily I had the statement about the fee being capped in writing, so they backed down and waived the whole amount.

Yes, I have warned people on here a number of times that the amount normally offered by the employer will only just cover the absolute minimum the law requires. Basically that you are told what you are signing away and understand what you are being offered. Even then in some areas it can be quite hard to find a solicitor willing to do if for less than c. £500.

If you want anything else doing or want the solicitor to negotiate on you behalf then it is very important to fully understand what this will cost. If that wasn't made clear to the OP then they have a good argument for a reduction.

Finally, it is worth noting that although it is customary for an employer to offer something for legal costs it is not actually obligatory.

getmore4less

Are you trying to say the settlement was for £2k and the bill is £1205.


genuine redundnacies don't need settlement agreement

how much would the statutory payment have been.

Undervalued

getmore4less wrote: »

Are you trying to say the settlement was for £2k and the bill is £1205.


genuine redundnacies don't need settlement agreement

how much would the statutory payment have been.

The OP said......

Out of the blue, they have sent us an invoice for £795 less what employer had paid, and said it must be paid within 14 days.

So I read that fairly clearly that they are being asked for the difference. Perhaps a couple of hours work at average solicitor rates.

Regardless he should have been clearly told about the cost in advance.

Obviously if the OP was getting little or nothing above statutory then this becomes even more ridiculous.

themull1

when husband contacted solicitor re the payment employer was offering, the solicitor said it would be enough, the solicitor started asking more and more questions regarding settlement money, then out of the blue sent husband a bill for the extra money. Much more than solicitor originally said it would cost, husband was never told of costs in advance, he was told employer would pay and assumed the payment was enough.

Blackbeard_of_Perranporth

It is normal that settlement or redundancy agreements are read through by a solicitor to a client. The employer would pay around £300 for this. These agreements are pretty common, and are nearly water tight.

You do not have to agree what you are told by your selected solicitor. You can also ask for further advice. The solicitor would explain this at the reading, and also explain that.
1 Further advice would be costed against the employee.

He would also explain that it is probably worthless contesting as thus would cost employee money.

From what you are saying, it seems there was some disagreement. Thus should had been sorted through HR prior to taking redundancy.

themull1

We weren;t told anything from our selected solicitor other than the amount quoted by employer should cover costs, then they asked employer for £70 more plus vat, at no point did they ever give my husband a list of charges or tell him he would have to pay any extra, will we have to complain, then take it further? I'm sure solicitors can't just spring bills on people like this.

Blackbeard_of_Perranporth

Something wrong here. This is a settlement agreement. You need a notary to read through it and sign it. Basically it is not negotiable, after what is discussed between HR and employee. This is what is sometimes paid for.

If you want further advice, you have to pay.

Redundancy is paid at statuary rates. Again, the notary would adise this.

No notary would advise challenging the agreement.