When an employee believes they have been unfairly dismissed, the first step is to seek legal advice. Under the Scale of Fees for Legal Practitioners in Antigua and Barbuda, the consultation fee for junior attorneys (five years or fewer in practice) is set at $500.
This means that an aggrieved employee must have at least $500 available just to determine whether they have a viable claim for unfair dismissal.
If there is a strong case, the next step involves preparing and issuing a letter of demand to the employer, seeking compensation for unfair dismissal. This step may cost the employee an additional $500, bringing the total expense at this stage to about $1,000.
Some employers may respond to the letter of demand, while others may choose to ignore it. However, even when there is a response, there is no guarantee that the matter will be settled without further escalation.
Where no settlement is achieved, the case must then proceed to the Department of Labour, which, according to the fee scale, is a minimum fee of $1,000. At this point, the employee’s legal expenses are already about $2,000 or more.
The Labour Department plays an essential conciliatory role, and has made commendable efforts to resolve disputes amicably; however, there is still no certainty that the matter will be settled at this stage.
If no resolution is reached at the Labour Department, the case would most likely move forward to the Industrial Court, as the alternative route is rarely used.
Under the fee scale, the minimum cost for Industrial Court matters is $3,500, with applications, such as injunctions and ex parte hearings, carrying further fees of $2,500.
By this stage, the employee would have already incurred between $6,000 and $8,000 in legal fees. This takes into account the initial consultation through to the filing of the claim before the Industrial Court.
Once filed, a matter may take anywhere from 3 to 10 years to be resolved. Even when the decision is in the employee’s favor, a further percentage of the award may be deducted as collection fees. Usually, this is based on an agreement between the attorney and the aggrieved employee.
The most discouraging aspect is that employees are not reimbursed for the legal fees as the threshold for recovering costs in the Industrial Court is exceptionally high.
For context, let us say that the court awards an employee $30,000 in a successful unfair dismissal claim. The said employee would have already spent about $8,000 in legal fees to bring the matter forward, and then must still pay a collection fee based on the award. Realistically, the employee would lose one-third of their compensation in unrecoverable legal expenses.
In keeping with Mr. Anderson Carty’s Privy Council recent decision, the Industrial Court ought to be more prepared to award exemplary damages in cases where employers dismiss employees in a manner that is harsh, oppressive, or inconsistent with good industrial relations practices. Only by doing so will employers be compelled to improve their conduct in the future, potentially reducing the number of cases brought before the court.