In labor cases, attorney's fees have two concepts. The ordinary concept is the fee the client agrees to pay their own lawyer. The extraordinary concept is an amount the losing party may be ordered to pay the winning worker as indemnity, which is what courts award in a judgment. A worker is generally entitled to attorney's fees when they were forced to litigate or incur expenses to protect their rights and interests due to the employer's unjustified act — for example, when wages or benefits were unlawfully withheld and the worker had to sue to recover them. The award is typically capped at ten percent (10%) of the total monetary award. Notably, in cases of unlawful withholding of wages, attorney's fees may be granted even without a showing of bad faith, and even if the worker did not formally pray for them, as long as unpaid wages were recovered.
When a worker has to hire a lawyer and go to court just to get the wages they are owed, the law can make the employer shoulder attorney's fees.
Two Concepts of Attorney's Fees
- The ordinary concept — the fee the client agrees to pay their own lawyer for services; and
- The extraordinary concept — an amount the losing party is ordered to pay the winning worker as indemnity. This is what a court awards in a judgment.
When a Worker Is Entitled
A worker is generally entitled to attorney's fees (extraordinary concept) when they were forced to litigate or incur expenses to protect their rights because of the employer's unjustified act — classically, when wages or benefits were unlawfully withheld and the worker had to sue to recover them.
The 10% Ceiling
The award of attorney's fees in labor cases is typically capped at ten percent (10%) of the total monetary award recovered by the worker.
A Worker-Friendly Rule for Withheld Wages
In cases involving the unlawful withholding of wages, the rules are notably favorable to workers:
- Attorney's fees may be granted even without a showing of bad faith on the employer's part; and
- They may be awarded even if the worker did not formally pray for them in the complaint, as long as unpaid wages were recovered.
This recognizes that being deprived of earned wages and forced to litigate is itself an injury the law compensates.
Practical Takeaways
- Courts award attorney's fees (extraordinary concept) when the employer's unjustified act forced the worker to litigate;
- The award is typically up to 10% of the total monetary award;
- For withheld wages, fees may be granted without bad faith and even if not specifically prayed for, once unpaid wages are recovered.
Frequently Asked Questions
Can a worker recover attorney's fees from the employer? Yes. In the extraordinary concept, a worker forced to litigate to protect their rights due to the employer's unjustified act, such as unlawfully withholding wages, may be awarded attorney's fees as indemnity.
How much can be awarded as attorney's fees? Typically up to ten percent (10%) of the total monetary award recovered by the worker.
Do I need to prove bad faith to get attorney's fees? Not in cases of unlawfully withheld wages. Attorney's fees may be granted even without a showing of bad faith, and even if not formally prayed for, as long as unpaid wages were recovered.
What is the difference between the ordinary and extraordinary concept? The ordinary concept is the fee the client agrees to pay their own lawyer. The extraordinary concept is the amount the losing party is ordered to pay the winning worker as indemnity, which is what a court awards.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.