Losing your job usually means losing your income at the same moment you need legal advice the most. That’s why so many people ask whether they can hire an employment lawyer on a contingency basis, where the lawyer is paid only if you recover money. In Ontario, the answer is often yes. But contingency fees come with rules, trade-offs and fine print that are worth understanding before you sign.
How contingency fees work
With a contingency fee, your lawyer’s fee is a percentage of what you recover, whether through a settlement or a court judgment. If there’s no recovery, there’s generally no fee for the lawyer’s time. That’s why it’s often called “no win, no fee.”
In Ontario, contingency fees are allowed in most civil matters, including wrongful dismissal and other employment claims. They aren’t permitted in criminal or family law matters. For employment cases, percentages commonly fall somewhere between about 20% and 35% of the recovery, depending on the complexity of the case, the risk involved and how far it goes.
The rules that protect you
Since July 2021, Ontario has had stronger consumer protections for contingency fees. Lawyers generally must use a standard form agreement with a plain-language summary of the key terms. They must disclose their maximum contingency fee percentage, either on their website or when you first contact them, and give you the Law Society of Ontario’s guide to contingency fees.
Before you settle, your lawyer should give you a written estimate of how much you’ll actually receive after fees, disbursements and taxes. At the end of the case, you should receive a clear statement showing the total recovery, the lawyer’s fee and the amount you take home.
What to check before you sign
Read the agreement carefully. What percentage applies, and does it change if the case goes to trial? How are disbursements, such as court filing fees or expert reports, handled, and do you pay them even if you lose? How are any legal costs awarded by the court treated? And what happens if you decide to change lawyers or settle on your own?
You should also understand whether the percentage applies to your whole recovery or only to the amount above what your employer already offered. That difference can matter a lot.
Is contingency right for you?
Contingency fees make legal help accessible to employees who couldn’t otherwise afford it, and they give your lawyer a strong incentive to maximize your recovery. On the other hand, if your case settles quickly for a large amount, a percentage fee can end up costing more than paying by the hour would have.
Some lawyers offer alternatives, such as a flat fee for reviewing your package, hourly billing for a straightforward negotiation, or a blended arrangement. It’s worth asking about all your options at the start. Our article on what services employment lawyers in Toronto typically offer explains the range of help available.
Talk to a Toronto employment lawyer
If you’re unsure about the strength of your case, our article on whether you can win a lawsuit against your employer is a good starting point. When you’re ready, our Toronto employment lawyers will explain the fee options available for your situation in plain language. Learn more about our employment law services.
This article is general information, not legal advice.
