Damages-based agreements—employment tribunal matters
Damages-based agreements—employment tribunal matters

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • Damages-based agreements—employment tribunal matters
  • Key terms
  • What is a damages-based agreement?
  • Pre-conditions to having an enforceable DBA
  • Amending the DBA
  • Calculating the percentage payment
  • Do you need a risk assessment?
  • Cancellation Rights
  • Insurance distribution activities

This Practice Note explains how the damages-based agreement (DBA) regime operates for employment tribunal matters, including:

  1. how DBAs work

  2. enforceability issues

  3. how to calculate the payment due under a DBA

  4. whether you need a risk assessment

The DBA regime is the product of ss 45–48 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012), which amend s 58 of the Courts and Legal Services Act 1990 (CLSA 1990), together with the Damages-Based Agreements Regulations 2013, SI 2013/609 and relevant requirements in the SRA’s regulatory regime.

An employment matter, for the purpose of the DBA Regulations 2013, means a matter that is, or could become, the subject of proceedings before an employment tribunal. For a pure stress at work claim not also involving a claim for disability discrimination under the Equality Act 2010, see Practice Note: Damages based agreements (personal injury and clinical negligence). For contractual claims falling outside of the Employment Tribunal's jurisdiction, see Practice Note: Damages based agreements (general litigation or advocacy services).

Key terms

base costs the amount you charge for the work you do (excluding disbursements and VAT), calculated as (1) number of hours spent on the client's matter x (2) hourly rate
CFA