It is a common issue that employers agree to pay the legal fees of the employee's lawyer and then prove slow to do so. To solve this, when acting for an employee, you may want to include the clause below. There are two drafts; the first for use where the terminology is We/You (meaning Employer/Employee) and the second where it is Employer/Employee. For both note the term Adviser' should be [your name] of Keystone Law Limited'.
Legal fees
We shall pay the reasonable legal fees (up to a maximum of £[AMOUNT] [plus VAT]) incurred by you in obtaining advice on the termination of your employment and the terms of this Agreement, such fees to be payable to the Adviser's firm on production of an invoice addressed to you but marked as payable by us. We shall make this payment within [seven/14/28/30] days of our receipt of that invoice. Any sums not paid within [seven/14/28/30]days of our receipt of that invoice, shall accrue interest at the rate permitted by the Late Payment of Commercial Debts (Interest) Act 1998 regardless of whether that statute applies to this Agreement). Notwithstanding the Rights of Third Parties provisions in this Agreement and the law as regards the same, we expressly agree that the Adviser' firm shall have a direct right of action against us to recover any sums (and accrued interest, if any) outstanding to them. For the avoidance of doubt, this provision does not affect in any way your contract with your Adviser's firm.
Alternative language for Employer/Employee (ie not we/you as per PLC precedent)
Legal fees
The Employer shall pay the reasonable legal fees (up to a maximum of £[AMOUNT] [plus VAT]) incurred by the Employee in obtaining advice on the termination of the Employee's employment and the terms of this Agreement, such fees to be payable to the Adviser's firm on production of an invoice addressed to the Employee but marked as payable by the Employer. The Employer shall make this payment within [seven/14/28/30] days of its receipt of that invoice. Any sums not paid within [seven/14/28/30] days of our receipt of that invoice, shall accrue interest at the rate permitted by the Late Payment of Commercial Debts (Interest) Act 1998 regardless of whether that statute applies to this Agreement). Notwithstanding the Rights of Third Parties provisions in this Agreement and the law as regards the same, the Employer expressly agrees that the Adviser's firm, shall have a direct right of action against the Employer to recover any sums (and accrued interest, if any) outstanding to them. For the avoidance of doubt, this provision does not affect in any way the contract between the Employee and the Adviser's firm.