In British Columbia, employment lawyers normally provide legal services on the basis of a certain hourly rate multiplied by the number of hours spent on the case, plus applicable taxes and out-of-pocket expenses (called disbursements) associated with the case. A lawyer’s hourly rate usually depends on his or her years of experience. However, rates may vary significantly from firm to firm (even for lawyers with the same years of experience) because of other factors like higher office expenses and overhead costs at certain firms. Accounts for hourly billing are normally rendered on a periodic (often monthly) basis.
Sometimes, particularly with recently dismissed employees, clients find it difficult, or simply prefer not to fund legal costs on an hourly rate basis. In the right situation, the lawyer and client are able to negotiate a retainer agreement where the lawyer would only be paid a fee for his or her services in the event the negotiation and/or claim is successful and money is actually recovered for a client. These “contingency fees” are based on a percentage of the amount recovered. The percentages to be applied are determined by agreement, in writing, between the lawyer and client, and should reflect a reasoned estimate of the amount of work that will be involved and the expectations of the amount that might reasonably be recovered.