Most accident at work compensation claims in the UK are handled under a Conditional Fee Agreement (CFA), commonly called no win no fee. This page explains clearly what this means, what it costs, and what you should check before signing an agreement.
What does no win no fee mean?
Under a CFA, your solicitor agrees to carry out legal work without charging you fees upfront:
- If your claim is unsuccessful, you generally pay no solicitor's legal fees
- If your claim is successful, your solicitor charges a success fee, deducted from your compensation
The success fee is a percentage of your solicitor's base costs, capped by law, and agreed before the claim begins.
Are there any upfront costs?
Under a genuine no win no fee arrangement, you should not be charged upfront fees. However, other costs may arise — such as medical report fees — handled differently depending on your agreement. Some solicitors arrange After the Event (ATE) insurance to cover these and protect you from paying the other side's costs if you lose. The ATE premium is typically paid from your compensation if you win.
What happens if my claim succeeds?
If your claim succeeds, your solicitor will deduct:
- Their success fee (agreed in advance)
- The ATE insurance premium (if applicable)
- Any disbursements not recovered from the other side
Under the Legal Aid, Sentencing and Punishment of Offenders Act 2012, success fees are paid from the claimant's damages. Understand these deductions before you agree to proceed.
What happens if my claim fails?
- You generally pay none of your solicitor's fees
- ATE insurance should cover the defendant's costs and your disbursements
- Check your agreement carefully to understand any circumstances where costs could still be payable
Why should you read your agreement carefully?
Before signing, understand:
- The success fee percentage
- How disbursements are handled
- The ATE premium
- Any circumstances that might mean costs are payable if you lose
- Your right to terminate the agreement