Solicitors have been advised by their representative body not to take on legal aid work in refugee appeal cases until they are offered higher fees.
The Law Society is understood to be seeking three times or more the current basic rate of £143.37 per appeal brought on behalf of asylum-seekers refused refugee status.
The society says the fee, which includes a daily top-up payment of £35.85, is "totally unrealistic" and does not reflect work involved in preparing such cases.
Until the fee is increased, the society is encouraging members to withhold their support for the work, funded by the Legal Aid Board, which provides legal services in civil cases for people on modest incomes. Members have been told it is up to the individual to decide whether to participate in the scheme.
Asylum-seekers are entitled to appeal to Government-appointed independent appeals authorities if their claim for refugee status is rejected by the Department of Justice. According to the Law Society's director general, Mr Ken Murphy, "realistic compensation must be offered to solicitors if the appeals work is going to be done and done properly".
He said Government efforts were being made to streamline the asylum applications system, but the increase in resources was not being extended to legal aid services, which asylum-seekers are entitled to.
Meetings between the Legal Aid Board and the Law Society have failed to resolve the dispute. Mr Frank Goodman, the board's chief executive, said it was looking again into the time spent by solicitors on refugee appeals. The board would then discuss the matter again with the society, and, if necessary, the Department of Finance.
Mr Goodman said 24 solicitors joined a panel set up this year to handle refugee appeals, and have been involved in 140 cases. He said the society's stance over fees had not led to delays in the processing of refugee appeals. The disputed fees apply also to legal aid work by private practitioners for family law cases in the District Court. The Legal Aid Board has seven in-house solicitors in the Refugee Legal Service who are also involved in refugee appeals hearings. The board plans to increase its staff soon, and hire a further seven solicitors to work in the Refugee Legal Service.