Remuneration for legal services
The remuneration for legal services or its calculation is always agreed with the client in advance, either as contractual or non-contractual remuneration.
Remuneration for legal services is established according to the Regulation of the Ministry of Justice no. 177/1996 Coll., as amended. Non contractual remuneration is charged if there is no other remuneration arrangement between the law firm and client.
Contractual remuneration is charged upon mutual agreement between the law firm and client, depending on complexity and duration. The remuneration may be agreed on an hourly, acts, flat-rate or share basis.
The total fee is calculated by multiplying the hourly rate and the number of hours spent on the case.
Remuneration per act
Remuneration is agreed as a fixed rate for performance of a certain act of legal service (for instance preparation of legal action, contract etc.).
Flat-rate remuneration for legal services can be used in the case of a long-term provision of legal services in particular to legal persons and individuals - entrepreneurs. The remuneration is paid on a monthly basis regardless of the amount of legal services actually provided in the given month. The flat-rate remuneration is suitable for clients who regularly need legal services.The flat-rate is calculated by multiplying the law firm's hourly rate by the anticipated amount of hours which will be spent on the client's affairs each month.
This type of remuneration is set as an agreed portion of the value of a case or another subject of legal relations. The client can be sure he will not pay more than assumed due to some unexpected complications.
Setting the specific type and amount of remuneration, is always a matter of individual agreement between the law firm and the client.