Fees and legal expenses insurance
The question of costs belongs at the start of every mandate. We address it openly and tell you in advance what to expect – so that you can make your decisions in full knowledge of the consequences.
The key points at a glance
Initial consultation
For an initial consultation with consumers, the statutory fee is capped under § 34 RVG. We will tell you the amount in advance. We generally advise businesses on the basis of a fee agreement.
Statutory fees
Without a specific agreement, fees are governed by the Lawyers' Remuneration Act (RVG) and the value in dispute. In court proceedings, the statutory fees are also the lower limit: a lower fee may not be agreed (§ 49b(1) BRAO, § 4 RVG). In an action for protection against unfair dismissal, the value for the continuation of the employment relationship is at most three months' gross pay (§ 42(2) GKG).
Fee agreements
Particularly in commercial law and when advising executives, we often agree an hourly rate (§ 3a RVG). You then know from the outset how fees will be charged. In court proceedings, we receive at least the statutory fees.
Legal expenses insurance
Many legal expenses insurance policies cover employment law, usually after a waiting period and subject to an excess. In family and inheritance law, cover is often limited to advice. We obtain confirmation of cover for you free of charge.
Who bears the costs of proceedings?
The cost rules differ considerably depending on whether a dispute is heard by the labour court or a civil court.
Labour court
Each side bears its own lawyer's fees
At first instance and out of court – regardless of the outcome (§ 12a ArbGG).
- Court feesNo advance payment. As a rule, waived in the event of a settlement.
- Dismissal actionsFor the dispute over the termination, at most three months' gross pay. Further claims, such as for a reference, continued employment or pay, are valued separately.
- From the second instanceThe losing party pays the costs of both sides.
Local and regional court
The loser pays
The costs of both sides – proportionately if partly successful (§§ 91, 92 ZPO).
- Court feesAdvance payment when the claim is filed. A settlement reduces them.
- Value in disputeBased on the economic value of the matter.
- Managing directors and board membersDisputes under service contracts generally belong here.
Our approach
Before we act, we discuss with you how fees will be charged and what costs you are likely to incur. In employment matters, we also point out the cost rule under § 12a ArbGG.
If you have legal expenses insurance, please give us the insurer and policy number. We submit the request for cover free of charge and clarify which costs will be paid.
Our invoices are itemised transparently. If the scope of the mandate changes significantly, we will raise this with you before any additional costs arise.
Frequently asked questions
What does the first consultation cost?
For consumers, the fee for an initial consultation is capped by law. We will tell you the exact amount in advance by telephone. If you have legal expenses insurance, we first clarify whether it covers the consultation.
Is an action for unfair dismissal worthwhile if I bear my own lawyer's fees?
That depends on the individual case. Often the result – such as a negotiated severance payment – is well above the costs. Before filing, we give you an assessment that sets out prospects, risks and costs side by side.
Does legal expenses insurance also cover the review of a termination agreement?
Often yes, if the employer has previously threatened dismissal. Whether this applies in your case depends on the policy terms. We clarify this with your insurer.
Talk to us.
Gewürzmühlstraße 5 · 80538 Munich