Policies, Guidelines and Reference Documents

Terms and Conditions of Appointment (TO BE UPDATED)

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Part Eight: Performance Review

8.1 Practice Management Requirements

Legal agents are expected to commit to a “best-in-class” operating philosophy and strive to continuous improvement processes. Legal Agents should be prepared to streamline work processes and be innovative in managing work flow.A legal agent may be required to ensure that all members of the legal team as well involved members of their staff, arrange to receive a thorough orientation at the beginning of their work with the federal government, on a non-billable basis.Legal agents may be expected to monitor and communicate legislative and legal developments that could be of particular interest to the federal government. 

8.2 Performance Evaluation Criteria

The Department of Justice in constant search of value in products and services. As such, the Department seeks to work with legal agents who manage performance proactively.In order to ensure and maintain the high standard of service expected of Legal Agents of the Attorney General of Canada, the Department of Justice may conduct periodic performance evaluations. The performance review may have an influence on the continuation of a Legal Agent's mandate as well as on opportunities to be considered for future appointments. Performance evaluation criteria may include but not be limited to:

• Ability for creative problem solving and technical excellence, which takes into account elements including :
• • Knowledge and negotiation skills
  • Understanding of our business
  • legal pragmatism and decisiveness
  • value-added and strategic thinking
  • willingness to recommend reasoned risks
  • ability to meet the strategy and objectives set out in the case plan
  • clarity and certainty in opinions and advice
• Ability to respect case budget
• Quality of supervision and delegation of work to appropriate resource levels
• Appropriate use of and sharing of work product and of technology
• Project management skills
• Inter-personal skills
• Oral and written communication skills
• Innovation in advancing strategies (including settlements) to the advantage of the federal government
• Ability to comply with:
• • Instructing Counsel's instructions;
  • Defined Terms and Conditions of appointment;
  • Department of Justice and federal government policies
• Ability to deliver superior client services, which takes into account elements including:
• • Ability to inspire confidence;
  • Ability to meet defined expectations;
  • Attentiveness, accessibility and support;
  • Contribution to success;
  • Responsiveness to criticism

Performance evaluation criteria may be specifically and further defined in the letter of appointment and/or statement of work, or through instructions provided by the Instructing counsel during the tenure of the appointment.

8.3 Performance Monitoring

The Instructing counsel or another member of the Department of Justice reserves the right to communicate periodically with a legal agent to discuss satisfaction with service, price and results.

8.4 Audit of Records

The Department of Justice reserves the right to conduct periodic audits of all records created and maintained by a Legal Agent in the course of the appointment in order to ensure compliance with departmental policies and implementation of proper financial mechanisms and security requirements.The Legal Agent and the Legal Agent's firm are expected to comply fully with an audit.

Part Nine: Billing Practices

9.1 Billable Services

A legal agent may bill for the delivery of legal services which fall within the scope of their appointment mandate. Fees incurred in the delivery of legal services must only be claimed by authorized personnel and in accordance with the negotiated remuneration arrangement as defined in the letter of appointment.Legal agents are expected to comply with government spending principles of economy, efficiency and effectiveness, keeping in mind the need to balance the importance of the case to the Department of Justice or the concerned federal government department or agency with their professional responsibilities.

9.2 Non-Billable Services

No fees may be claimed for time spent educating associates, students, paralegals or technical.staff.No fees may be claimed for time spent in travel between the place of residence and usual place of business.Fees incurred as a result of services performed by staff members not specifically authorized to render services in accordance with an appointment mandate are not billable. This includes researchers, librarians, secretaries, administrative assistants, computer operators, bookkeepers, corporate and other records or document clerks or word processing operators.Time spent performing tasks that are administrative in nature and not “legal value-added input”, is not billable. Work of an administrative nature forms part of the Agent's overhead cost and may not, therefore, be charged as a separate item. Examples of administrative tasks include:

• preparation of accounts
• preparation of budgets
• word processing
• document processing
• opening and closing files
• sending and receiving facsimile messages

9.3 Daily Limit on Billable Hours

Claims for fees are subject to a daily maximum limit, as established in the letter of appointment. Fees claimed in excess of established limit, including travel time will not be allowed. Where circumstances change and/or warrant fees claimed in excess of the limit, prior written approval is required from the Instructing counsel.

9.4 Remuneration

A legal agent's remuneration is negotiated in the context of the particular circumstances of the assigned work and should not be considered a precedent for future negotiations. The negotiated remuneration is confirmed in the letter of appointment, and, claims for services rendered in accordance with the appointment mandate, should be submitted accordingly.

9.5 Work Performed by Articling Students and Paralegals

If authorized by the Instructing counsel, Legal Agents may employ paralegals and articling students to render services, in accordance with applicable law society or Bar rules. The rate of pay for services rendered by paralegals and articling students is established in the letter of appointment.

Paralegals and articling students are restricted to performing tasks or activities that require the application of legal skills, judgement and experience acquired by professional training and practice (“legal value-added” input). While Legal Agents may require paralegals and articling students to perform secretarial or clerical tasks, they cannot bill for the time spent performing administrative functions.

9.6 Disbursements

9.6.1 Principle

Legal Agents will be reimbursed at cost for all necessary and reasonable expenditures incurred in the delivery of mandated legal services. There are neither definitions nor limits as to what constitutes a necessary disbursement. Agents are, however, encouraged to respect the expenditure of public monies and the principles of economy, efficiency and effectiveness in the delivery of legal services.

9.6.2 Supporting Information

The letter of appointment establishes a dollar threshold for disbursements requiring proof of payment. Unless otherwise specified, the adopted practice requires that individually itemized claims for disbursements in excess of $25.00 must be supported by proof of payment. It is recommended that all un-submitted receipts (i.e., related to expenditures less than $25.00) be kept on file in the event they are required.

9.6.3 Significant Disbursement Costs

The letter of appointment establishes a dollar threshold for disbursements requiring prior written approval of the Instructing counsel. Unless otherwise specified, the adopted practice requires prior written approval from the Instructing counsel for all expenditures in excess of $500.00. Where claiming an expenditure for which prior written approval is required, a copy of the approval must support the claim.

9.7 Overhead Allocations

9.7.1 Office Supplies

Costs associated to office supplies including reusable materials such as binders, tabs, floppy disks, etc., and consumable supplies such as stationary, pens, etc., are not billable.

9.7.2 Telephone Service

Legal agents are expected to make use of fixed-pricing arrangements with telephone service providers. As such, unless otherwise negotiated and specified in the letter of appointment, minute-by-minute costs associated to local or long distance telephone calls cannot be claimed.

9.7.3 Facsimile Transmissions

Legal agents are expected to make use of fixed-pricing arrangements with communication service providers. As such, unless otherwise negotiated and specified in the letter of appointment, costs associated to local and long distance fax transmission will not be paid.

9.7.4 Rapid Communication

Legal agents are expected to make use of fixed-pricing arrangements with rapid communication service providers. As such, unless otherwise negotiated and specified in the letter of appointment, or approved in advance by Instructing counsel, costs associated to communication by telex, telegram, courier or other rapid communication mode will not be paid.

9.7.5 In-House Photocopying

Legal agents are expected to limit the use of photocopying and use electronic document exchange where appropriate. As such, unless otherwise negotiated and specified in the letter of appointment, or approved in advance by Instructing counsel, costs associated to the internal production of photocopies of documents will not be paid.

9.7.6 Postal Charges

Costs associated to the transmission of documents through Canada Post services will not be paid, unless otherwise negotiated and specified in the letter of appointment or approved in advance by the Instructing counsel.

9.7.7 Computer System / Internet Charges

Costs associated to maintaining and operating computer systems and ensuring access to Internet, will not be paid.

9.7.8 Computer Legal Research

Legal Agents are expected to make use of fixed-pricing arrangements with providers of on-line databases As such, unless otherwise negotiated and specified in the letter of appointment, or authorized in advance by Instructing counsel, costs associated to computer legal research time and expenses to access external data banks, will not be paid.

9.8 Miscellaneous Disbursements

9.8.1 Taxis

Legal Agents will be reimbursed for taxi costs incurred as a result of required travel in the context of the delivery of mandated services. Costs associated to travel between the place of residence and usual place of business will not be covered. Original receipts are required to support the claim regardless of the amount.

9.8.2 Court Filing Fees

Legal Agents will be reimbursed for court filing fees paid in accordance with established court schedules.

9.8.3 Expert Witness Costs

The term “expert witnesses” includes experts whose services are required solely for the purpose of litigation to prepare a report and give oral evidence in court or to provide technical assistance to counsel in the conduct of the litigation. The Instructing counsel must be consulted and written approval obtained, prior to engaging the services of expert witnesses.

9.9 Travel Claims

9.9.1 Principle

A claim for costs associated to travel, must be accompanied by the claim for the substantive work done on the file that necessitated the travel.Expenses incurred in connection with authorized travel for the purposes of official government business, such as mileage and meals, must be claimed in accordance with Travel Allowances established for legal agents, which are regularly updated to reflect Treasury Board standards. To determine the current Travel Allowances, agents should contact the Instructing counsel.

9.9.2 Travel Time

Where a Legal Agent is required to travel to a locality 16 kilometres or more from the agent's usual place of business, the time spent in travel between the two locations, by the most reasonable and economical means of transportation, is billable time.

Fees claimed in excess of the established daily maximum, including travel time incurred that day, will not normally be allowed.

9.9.3 Mileage

Where the use of a legal agent's private car is used for the purposes of travel, the Legal Agent may claim as a disbursement a fixed amount per kilometre in accordance with the established Travel Allowances. No claims for kilometres covered will be allowed for trips of less than 16 kilometres, one way, from the Agent's usual place of business.

9.9.4 Meals

Reimbursement for meals, in accordance with established Travel Allowances, will only be authorized if the Legal Agent is in authorized travel status.

9.9.5 Accommodation

Private accommodation required in connection with authorized travel for the purposes of official government business, must be claimed in accordance with Travel Allowances established for legal agents.

Commercial accommodation required in connection with authorized travel, should be arranged at a property and rate established for the use of the government employees and identified suppliers, and, outlined in the Public Works and Government Services Canada Accommodation and Car Rental Directory. For direction pertaining to commercial accommodations, agents should contact the Instructing counsel.

9.10 Goods and Services Tax (GST) and Harmonization Sales Tax (HST)

In this section, the term GST is interchangeable with the term HST.It is the Department's position that a legal agent's treatment of GST, in its bill for legal services, is based on fact and subject to the principles of law. The Excise Tax Act and the concept of agency govern this particular area, both of which could dictate different GST applications on certain transactions charged to the Department depending upon the circumstances.

A legal agent would normally present a bill for fees by totalling their fees and then adding GST.

All disbursements form a part of the services rendered, and thus are taxable according to the Excise Tax Act and the concept of agency. The specific types of disbursements and how to bill them are detailed below:

• Disbursements for which the agent will receive an Input Tax Credit (ITC): The Agent claims the expense, subtracts out the ITC, and charges GST on the balance of the invoice.
• Disbursements which are based on set rates or allowances: The Agent claims the expense and adds GST. For ease of reference, the Travel Allowances established for legal agents, indicate the allowances exclusive of GST.
• Disbursements for which the agent will not receive an ITC: The Agent claims the amount paid and adds GST.

9.11 Exemption from Provincial Sales Tax

The federal government does not pay provincial sales tax on legal fees charged for the provision of legal services by legal agents.

Legal agents practicing in the Province of Québec, are provided with an exemption certificate for their signature in circumstances where the Quebec sales tax is not applicable.

Part Ten: Processing of Accounts

10.1 General

All work is entrusted to a legal agent on the basis that his/her account for services rendered is subject to examination or “taxation” by the Department of Justice and such verification will determine the remuneration to which a legal agent is entitled.

The Department of Justice reserves the right to re-assess payments, conduct post-payment audits or request additional supporting information from Legal Agents for up to five years after the file is closed.

10.2 Submission of Accounts

10.2.1 General

An itemized account must be submitted to the responsible Justice official for verification, in accordance with the instructions provided in the letter of appointment. It is important to ensure that each account refers to one file or piece of work assigned.

The frequency in which legal agents submit accounts must be in accordance with the instructions provided in the letter of appointment and/or statement of work. At the very least, agents should submit an account for all services rendered and disbursement costs incurred at the conclusion of the file.

The Federal Government fiscal year is from April 1st to March 31st of the next calendar year. Accounts must only include claims for services rendered and disbursement costs incurred during one fiscal year. All accounts (interim and final) must be submitted no later than April 10th of each new fiscal year for work performed in previous fiscal year, even if the work on the file is not yet complete.

10.2.2 Claims for Fees and Disbursements

A detailed description of activities performed and time spent on each activity should be itemized and recorded in chronological order.

All disbursements claimed must be itemized and recorded against the appropriate file on which the cost was incurred.Accounts should be submitted together with the reporting letters and any official files, reports, documents.

10.2.3 Request for Payment Form

The prescribed “Request for Payment” form, which is routinely provided with all agents under cover of an appointment letter, may be used when submitting accounts for services rendered and disbursement costs incurred further to an agent appointment. Civil legal agents have the option of using their firm's standard invoicing software provided all information required to complete the prescribed payment form is contained in all accounts.

10.2.4 Certification Endorsement

All accounts submitted must bear the following certification endorsement :I hereby certify that the services herein referred to were rendered by me or the members of the firm identified herein and this account truly shows the nature of the services rendered, the time occupied, the fees claimed, the disbursements made and all moneys received in this matter.

10.2.5 Case and Billing Numbers

A case and billing is created for each ad hoc appointment, to track the case information and associated costs. These numbers are conveyed to the legal agent by way of the letter of appointment and must be referenced in all relevant correspondence and accounts. If the Case Number and Billing Number are omitted or used incorrectly, the processing of the account may be delayed or the account returned to the Legal Agent for correction.

10.3 Verification of Accounts

The responsible Justice office will review an account for reasonableness, be ensuring such things as:

• Compliance with the terms and conditions of appointment;
• appropriate rates of remuneration have been applied;
• all fees charged are reasonable and necessary in the delivery of the mandated legal services;
• all activities have been properly itemized;
• case and billing numbers are appropriately inscribed on the account;
• all disbursements have been itemized and recorded against appropriate file;
• all disbursements charged are reasonable and necessary, appropriately approved, and, supported by receipts as required;
• all amounts have been correctly totalled;
• GST/HST has been appropriately applied on fees and disbursements; and,
• the account has been properly certified by the agent.

10.4 Payment

Following the verification process, “taxed” accounts are forwarded to a designated contact person within the department or agency responsible for payment under cover of correspondence confirming that the account has been reviewed by the Department of Justice and that payment should be issued in the specified amount.

A copy of this correspondence is sent to the Legal Agent as notification of the processing of the account.

10.5 Recovery

The Department of Justice reserves the right to re-assess payments, conduct post-payment audits or request additional supporting information from Legal Agents for up to five years after the file is closed.

Legal Agents are expected to fully co-operate with post payment audits and requests for information. Amongst other things, they will have to ensure complete access to all relevant file material, respond to all information requests and reimburse the Government of Canada any amount of money that is considered an over-payment as a result of an audit.

All monies owing to the Crown shall be remitted to the Department of Justice by cheque payable to the Receiver General for Canada. All such monies shall be remitted in full and not credited as payment on the agent's account.

10.6 Inquiries

All subsequent reminder notices or inquiries regarding the status of payment of an account are to be directed to the designated contact person within the department or agency responsible for payment. Where significant delays occur, and satisfaction is not obtained from the client contact, the Justice Instructing counsel's office should be contacted for assistance.

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