A lawyer is a professional who provides legal services to clients in need. Naturally, according to both common practice and legal provisions, anyone using legal services is obligated to pay the lawyer’s fees. So, how does the law regulate legal fees? On what basis are these fees calculated? Let NP LAW help you clearly understand such a matter in this article. 

I. What is a lawyer’s fee?

According to Article 54 of the Law on Lawyers 2006: Clients must pay a fee when using legal services provided by a lawyer. The receipt of fees is carried out in accordance with this Law and other relevant legal provisions.

This means that whenever a client uses legal services provided by a lawyer, they must pay a fee. The amount is agreed upon between the two parties in the legal service contract, and the calculation must be based on the legal grounds prescribed by law.

II. Basis and methods for calculating fees

When negotiating a legal service contract, the lawyer must clearly explain the basis for the fee calculation. According to Article 55 of the Law on Lawyers 2006, the fee is determined based on:

  • The content and nature of the legal service;
  • The time and effort the lawyer spends performing the service;
  • The experience and reputation of the lawyer.

Lawyers must discuss and agree with their clients on how legal fees will be calculated.

The fees can be based on:

  • The lawyer’s hourly rate;
  • A fixed total amount for the whole case;
  • A percentage of the value of the case, contract, or project;
  • A fixed fee for a long-term service contract.

Legal basis: Article 55, Law on Lawyers 2006.

III. Fees under legal service contracts

  • The legal service fee under the service contract is agreed upon by both parties, based on the principles and methods stated in Section II of this article. When negotiating a legal service contract, the lawyer must clearly inform the client about the fee and any related costs.
  • It is important to note that in criminal cases where the lawyer participates in the proceedings, the legal fee must not exceed the maximum limit set by the Government.
  • Travel expenses include transportation costs, accommodation, and other reasonable expenses related to the performance of legal services, as agreed upon by both parties in the legal service contract.

Legal basis: Article 56, Law on Lawyers 2006.

IV. Lawyer’s fees in criminal proceedings

- Lawyer’s Fees in Criminal Proceedings as Agreed with the Client:

The lawyer’s fee for participating in a criminal case is agreed upon between the client and the law office or law firm in the legal service contract, based on the following factors:

  • The content and nature of the legal service;
  • The time and effort the lawyer spends on providing the service;
  • The lawyer’s experience and reputation.

The fee may be calculated by the hour or as a flat fee for the entire case. However, the maximum hourly rate must not exceed 0.3 times the Government’s basic salary rate.

The lawyer’s working hours are determined by mutual agreement between the lawyer and the client.

In summary, the lawyer’s fee for participating in criminal proceedings must not exceed 0.3 times the Government’s basic salary rate, which currently equals 447,000 VND per hour although negotiated between the client and the law firm.

- Lawyer’s Fees in Criminal Cases Appointed by Investigating or Judicial Authorities

For criminal cases where a lawyer is appointed at the request of an investigating or judicial authority, the fee paid for one working day of the lawyer is 0.4 times the Government’s basic salary rate.

The lawyer’s working time includes:

  • Time spent meeting with the detainee, suspect, or defendant;
  • Time spent collecting documents, evidence, and information related to the defense;
  • Time used for reviewing case files and preparing defense materials;
  • Time spent attending court hearings; and
  • Other reasonable time necessary to fulfill defense duties as requested by the investigating or judicial authority.

The lawyer’s working time must be verified and confirmed by the investigating or judicial authority, or by the official directly handling the case.

In addition to the legal fee, during the preparation and participation in court hearings or proceedings, the lawyer is also entitled to reimbursement for travel and accommodation expenses in accordance with current regulations on domestic business trip allowances for state officials and public employees.

Article 19 of Decree No. 123/2013/NĐ-CP also stipulates that the investigating or judicial authority that requests a lawyer’s participation in criminal proceedings is responsible for paying the lawyer’s fees and related expenses in accordance with the applicable regulations.

The funds for these payments must be included in the annual budget of the investigating or judicial authority. Apart from the fees and expenses paid by the authority, the lawyer is not allowed to request or receive any additional money or benefits from the suspect, defendant, or their family members.

Legal basis: Article 57, Law on Lawyers 2006; Articles 18 and 19, Decree No. 123/2013/NĐ-CP.

V. Common questions on lawyer’s fees

1. How are disputes over legal fees resolved?

  • Disputes related to legal fees and expenses are resolved under civil law provisions.
  • If the dispute involves a lawyer employed under a labor contract, it is resolved according to labor law provisions.

Legal basis: Article 59, Law on Lawyers 2006.

2. How are payment procedures handled when the lawyer is appointed by a judicial authority?

  • The authority requesting the lawyer prepares the budget and makes direct payments:
    + At the investigation stage, the investigative agency pays the lawyer;
    + At the prosecution stage, the Procuracy handles payment;
    + At the trial stage, the Court is responsible for the fee.
  • After each stage is completed, the lawyer submits the necessary documents for payment.
  • The authority must process the payment within five working days of receiving complete documentation.

Legal basis: Article 3, Joint Circular No. 191/2014/TTLT-BTC-BTP.

Conclusion

When engaging in legal services, clients are required to pay the lawyer’s fee, and lawyers must ensure that the fee is clearly defined and accurately calculated in accordance with the law and the agreed-upon contract terms.