Employers concerned over ‘no-win, no-fee’ online ads
● Recruiter seeks clampdown on prohibited social media adverts that can lead to suspect legal claims, reports Fearghal O’Connor
One of the country’s largest recruitment firms is calling for a clamp down on what it claimed was a rise in “no-win, no-fee” adverts by solicitors on some popular social media sites, including TikTok.
Despite a strict prohibition on such advertisements in Ireland, Excel Recruitment says that a growing number of posts on social media are promoting no-win no-fee services.
These social media adverts risk encouraging “questionable” workplacerelated claims against employers – from unfair dismissal to workplace accidents, said Shane McLave, managing director of Excel Recruitment.
Social media adverts on a no-win no-fee – of which the Sunday Independent has seen examples – risked encouraging claims that were weak and eventually dropped before reaching a conclusion, he said,
This was a problem for firms, he said, because any rise in such claims could cost Irish businesses millions and drive up insurance premiums even further.
“There is a growing concern amongst employers and recruiters about the rise of ‘no-win, no-fee’ adverts on social media,” said McLave.
Any promotion of such services through popular social media channels could appeal to “a younger audience who might not be fully aware of the legal and financial implications of such agreements.
“Because claimants believe they face no financial risk, they may be more inclined to pursue weak or exaggerated claims,” he added.
Ultimately, if claims were questionable they would get thrown out of court – “but not before costing employers lots of time and money.”
He continued: “Furthermore, businesses often settle these claims – even if they are questionable – to avoid lengthy and costly legal battles, resulting in financial strain and increased insurance premiums.
“It not only inflates operational costs, but it also undermines genuine claims,” he said.
However, if young people were tempted by “no-win, no-fee” social media adverts to make a claim, they could face serious financial repercussions, said McLave.
These sort of adverts on social media sometimes failed to highlight the risks of litigation, while overstating the potential benefits, he said. Some videos on social media created an unrealistic expectation about the outcomes and costs of legal proceedings.
“People who are encouraged to make a claim on the back of such postings could still face substantial legal bills further down the line – if their claim is unsuccessful. And even if successful, they could still lose a substantial chunk of their compensation to legal bills.”
While “no-win, no-fee” adverts are prohibited in Ireland, such arrangements are legal and they can be offered to clients.
In response to queries on the matter, the Law Society said that it had previously published general guidance on the use of social media by solicitors, which noted: “The same ethical and legal considerations that solicitors are required to follow in their day-to-day work also applies to their conduct online.”
The Legal Services Regulatory Authority (LSRA) is responsible for regulating solicitors’ advertising and regulations contain specific prohibitions on “no-win, no-fee” type advertising regarding personal injury legal services.
“The advertising of legal services on social media , including TikTok, is governed by the same standards and statutory regulations as print or other media,” said a spokeswoman for the LSRA.
“The prohibition on the use of certain phrases, including ‘no-win, no-fee” or other words of similar effect is clearly set forth in the advertising regulations. Where potential breaches of the advertising regulations are brought to the attention of the LSRA, or where complaints in relation to such advertisements are made, the LSRA takes the requisite steps to ensure that the prohibitions applicable to any such advertisements are enforced.”
CLAIMANTS COULD PURSUE EXAGGERATED LEGAL CLAIMS