Contingency fee arrangements in employment law allow clients to pursue legal action without upfront payment of attorney’s fees. Legal costs are only incurred if the case is successful, typically through a settlement or court award. For example, if an individual experiences wrongful termination and secures a favorable outcome with legal assistance under such an agreement, the attorney’s fees are deducted from the awarded compensation.
This approach removes a significant financial barrier, enabling individuals to access legal representation they might otherwise forgo due to cost concerns. Historically, such arrangements have played a crucial role in empowering employees to assert their rights against employers with greater resources. This access to justice is particularly vital in cases involving discrimination, harassment, or wage disputes where individuals may be financially vulnerable after job loss.