Ministry of Justice

Regulating damages based agreements


Status: Closed - with response

Open date: 01 July 2009

Close date: 25 September 2009

Responses published: 27 October 2009

A consultation on the proposals to regulate damages based agreements, in which legal fees are paid out of damages awarded, commonly used in Employment Tribunals in England and Wales.

Consultation paper

Response

We received 33 responses to the consultation from a wide range of respondents including employment law practitioners, legal regulators and advisory bodies, trade unions, government bodies, legal associations and members of the judiciary.

The majority of respondents agreed that damages based agreements should be regulated to protect consumers, although views on the specific proposals set out in the consultation paper differed. Final regulations will be developed in consultation with the key stakeholders.

Regulations

Regulations relating to Damages Based Agreements in Employment Tribunal proceedings have now been developed.  A draft of the regulations can be found below. 

Comments on the draft regulations are welcomed by Friday 8 January 2010