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08/07/2009
Redundancy law changes 'may not be good for clients' |
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Proposed changes to redundancy law that would see new regulations brought in to govern contingency fee agreements based on damages might not have a positive effect for consumers.
This is the suggestion of a spokesperson for the Law Society, who said the rule to make agreements set up in breach of regulations unenforceable could lead to a situation that is not in the interests of the client.
"In practice, this may mean that the client will have to take legal action in order to obtain a decision on whether the contract could be enforced or not," she remarked, adding that such issues would be better dealt with by regulators.
There is currently no statutory regulation for damages-based contingency fee agreements, which are typically used in employment tribunals.
According to the Ministry of Justice, which has proposed new powers for the Lord Chancellor to regulate the use of these agreements, this has left the opportunity for poorly informed claimants to be exploited.
Written by Pauline Adams |
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