Your guide to the legal profession 2024/25
updated on 11 November 2024
In this guide we outline some of the key issues facing the UK legal profession, as well as headline-grabbing cases and mergers – are you in the know?
Lawyers interact with companies, national and local government, institutions and individuals in almost every area of life, so it’s no surprise that wider economic and political issues affecting their clients often have a knock-on effect on their work. Of these, eight key issues are currently pressurising the sector and driving profession-wide change in various ways. They can be divided into:
- external factors – climate change, court backlogs, AI, cybersecurity and interest rates; and
- internal issues – diversity and inclusion in the profession, education and training trends, hybrid working and the war for talent.
Head to LCN’s Commercial awareness hub, sponsored by Mayer Brown International LLP, to boost your understanding of the factors impacting law firms and their clients.
Contents
Hybrid working and the war for talent
Legal developments – talking points
Climate change
With at least 230 climate cases filed in 2023, it was a busy year for environment lawyers. A large portion of these cases (47) were related to ‘climate washing’, which is when a company misrepresents how sustainable its goods or services are. There were also more than 30 ‘polluter pay’ cases, which seek to hold companies accountable for harm caused by their greenhouse gas emissions. However, not all climate cases were fought on the side of the planet. For example, there were also several environmental, social and governance (ESG) backlash cases, which challenge the incorporation of climate risk into financial decision making.
Climate action might not always be a primary focus for businesses, and law firms have faced criticism from activists urging the profession to adopt greener practices, whether that’s by reducing their own emissions or by carefully considering the nature of their work. For example, the Law Students for Climate Accountability’s (LSCA) 2024 report ranked 100 firms based on how much fossil fuel-related work they’ve engaged with over a five-year period. The 100 firms were selected due to their top 100 ranking on Vault Law’s national ranking of the most prestigious law firms. LSCA found that the firms included facilitated $2.89 trillion in fossil fuel transactions, engaged in 518 instances of climate change exacerbating representation and received $32.97 million in compensation for lobbying on behalf of fossil fuel interests.
Despite calls for more action in this area, the profession has made several changes in the name of sustainability in recent years. In 2023, 100 barristers made a declaration of conscience, refusing to represent fossil fuel clients or prosecute climate protesters. This made headlines because it undermines the ‘cab rank’ rule – a rule that requires barristers to take on a case if they’re available, regardless of personal beliefs. Law firms have also been putting measures in place to ensure their practice is more sustainable. Last year, eight firms signed Legal Charter 1.5, pledging to reduce internal, external and global emissions to meaningful offsetting. The charter was launched just before climate action week (24 June to 2 July 2023) and included firms such as Clyde & Co LLP and DLA Piper UK LLP.
Individual policies to aid sustainability have also been introduced. For example, Dentons led the way with its recent project, banning printing and encouraging lawyers to increase time spent working from home, resulting in a 44% reduction in its carbon footprint. On top of the various changes that law firms have enforced, they’ll also be affected by the new anti-greenwashing rules imposed on businesses by the Financial Conduct Authority (FCA), which all businesses and authorised firms have had to meet since 31 May 2024. This new regulation aims to ensure that “sustainability-related claims about [a firm’s] products and services must be fair, clear and not misleading” and gives the FCA the authority to challenge misleading claims. It remains to be seen how these changes will affect law firms, but it’s clear that steps are being taken to make the profession greener.
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Court backlogs
Since the pandemic, the courts have faced mounting backlogs, with 67,573 cases pending in the crown court as of 24 May 2024. The National Audit Office (NAO) investigated the issue and reported that the Ministry of Justice’s (MoJ) goal to reduce the backlog to 53,000 cases by March 2025 is no longer achievable. In fact, the MoJ has predicted that by March 2025, the number of cases will be reduced to only around 64,000. The high number of cases is seeing victims await trial for an average of 22 months. In addition, the riots that took place in the wake of the murders of three girls in Southport on 29 July exacerbated the existing issues. As of 16 August 2024, more than 1,000 people were arrested and almost 600 charged in connection with the riots and violent attacks. The riots had a serious effect on the prison overcrowding crisis, leading to the government reintroducing Operation Early Dawn, which saw offenders held at a police station and summoned to magistrates’ court only once a prison cell was ready. Prior to the riots, the prisons were already overwhelmed and in May, there were 16,000 people in prison waiting for a trial or to be sentenced after being found guilty – a 50-year record.
The NAO’s report laid out the key reasons for the delays, noting that industrial action has resulted in reduced disposals. The report also showed that there’s been a 16% increase in ineffective trials in 2017 and a 27% increase in 2023.
Another fundamental issue is the lack of criminal barristers. It was found that the number of criminal law barristers has decreased by 10% between 2016/17 and 2021/22. Vice chair of the Criminal Bar Association, Mary Prior KC, explained that aspiring criminal lawyers are “put off by the hours that have to be worked, the additional stresses and strains of the job, and comparatively much less income than they can earn in other less stressful fields of law”.
Data also shows that the average length of crown court hearings increased by 15% from 2019 to 2023. The report explained that only simple cases could be heard during the pandemic, meaning that there’s now a higher proportion of complex cases in the backlog. On top of this, the number of ‘not guilty’ pleas has increased, lengthening the backlogs. This is because, when a defendant pleads ‘guilty’, cases take an average of two hours, while ‘not guilty’ pleas take an average of 20 hours. The report explained that poor “court estate” is also an issue as “maintenance issues can lead to hearing delays, case adjournments and courtroom closures”.
So, what’s the plan? Firstly, the government has committed £220 million for essential repair work. The MoJ has also made a range of changes, with plans to invest more in the system, roll out remote hearings, extend the use of Nightingale courts and recruit “hundreds of judges to get victims the justice they deserve, and put more offenders behind bars”.
However, problems could still snowball as barrister strikes loom. At the start of October 2024, the Law Society advised criminal lawyers to reduce legal aid work as part of a pay dispute. In Northern Ireland, a one-day strike took place on Monday 4 November, which saw barristers refusing instructions in Category A crown court cases, such as murder and manslaughter, as well as any retrials following hung juries or appeals. Plus, further strike action may occur unless there’s an immediate increase in criminal legal aid fees. The commissioner designate for victims of crime, Geraldine Hanna, said that the action has already resulted in delays for some victims’ cases. As legal aid reaches a crisis point, it’s clear that court backlogs will continue to be an ongoing area of contention and one you must keep an eye on.
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AI
The increasing sophistication of AI is leading to its widespread adoption by law firms, which are now able to streamline administrative tasks. AI use has become more commonplace, creating a number of questions about how the profession will change in the future as technology evolves. For one – how will AI affect the careers of aspiring lawyers?
Firstly, the way aspiring lawyers are entering the profession is changing as law firms release guidance on using AI in applications, with some even introducing AI-specific questions into their applications. Shoosmiths and A&O Shearman both released application guidance earlier this year, with the magic circle law firm encouraging aspiring lawyers not to use AI to exaggerate their skills but rather to “complement” them. The firm emphasises the importance of approaching applications honestly, advising against using AI-generated answers “word for word”. Instead, A&O Shearman suggests using AI to refine and spell-check CVs and cover letters or as a way for applicants to get feedback on their own responses to written application questions.
Read this Oracle to discover more about approaching AI in applications.
AI is also causing seismic shifts in the way lawyers operate. Many law firms are investing in AI research and training to ensure that they remain on the cutting edge. For example, Travers Smith LLP and Linklaters LLP have both recently launched new AI training programmes. Travers Smiths’ Artificial Intelligence Academy incorporates mandatory modules to enable lawyers to incorporate AI into their day-to-day work. Similarly, Linklaters’ programme, GenAI Expert Training, is designed to increase understanding of AI and allow participants to be able to identify use cases for their practice groups.
So, what use cases does AI have? For many firms, AI is mainly used to complete repetitive administrative tasks, allowing more time for lawyers to complete creative or strategic work. For example, Shoosmiths uses contract review tool Cia, cutting down three to five hours of contract review time on many day-to-day contracts.
As AI is used to increase efficiency, many wonder how it’ll affect legal jobs. A survey of 160 law firms by legal technology company Litera found that almost half of respondents are embracing some form of generative AI (42%). Respondents reported using AI for a range of different purposes, such as document creation (69%), proofreading (69%), due diligence (54%), and content surfacing and suggestions (44%). However, the uptake doesn’t necessarily mean that jobs will be at risk. Independent and creative thinking remains a key skill for lawyers. In a recent survey, Bird & Bird stated that it expects that AI use will remain limited to certain areas, such as first-draft contracts and other legal documents. In addition, many law firms are still somewhat distrustful of the technology, with 35% of firms reportedly concerned about accuracy and 28% worried about the technology’s security, according to Litera’s report.
However, as AI is adopted and remoulds the role of the lawyer, it’s likely that it’ll cause a significant shift in working patterns. For one, the custom to bill by the hour may change as AI makes work more efficient. A recent Thomas Reuters report, 2024 Generative AI in Professional Services, found that 39% of respondents believe that the use of alternative fee arrangements is likely to increase as generative AI is used more widely. William Josten, reference attorney with Thomson Reuters, explains that: “There’s going to be a push towards greater fixed fees for certain types of work that become more readily commoditised based on the adoption of AI. You’re just not going to be able to bill as much based on the hour because it’s going to be AI-automated. The need to shift towards a fixed fee is going to be essential.”
A change to accepted billing practices would be a large shift in the legal industry. The billable hour is a key reason that lawyers are expected to work such long hours. CEO of LawCare, Elizabeth Rimmer explains that “firms often reward people who go beyond [billable hour] targets”, which can be an issue as this “incentivises people to work long hours”. So, could this shift go hand in hand with calls for better work/life balance in the legal profession?
Read this Blog to discover more about how AI could affect the billable hour.
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Cybersecurity
Cybersecurity is another hot topic for many law firms, with successful attacks having risen by 77% in the past year to 954, up from 538 in 2023. Research by the National Cyber Security Centre found that 65% of firms have been victim to a cyberattack but 35% don’t have a cyber-mitigation plan. Larger firms are more at risk, with 90% of top law firms experiencing a threat, according to research by Cyfor Secure Cyber Security. However, smaller firms are also at risk, as they’re often seen to be easier targets with less sophisticated infrastructure.
PwC’s Annual Law Firms’ Survey 2023 found that 85% of firms are “somewhat” or “extremely” concerned that cyber-threats will stop them from meeting or exceeding goals. Lubbock Fine partner, Mark Turner, outlined that law firms are particularly attractive targets because they hold highly sensitive data, which is “valuable if you intend to blackmail a law firm”. Therefore, firms are taking more protective measures, but this usually comes at a high cost. Director and underwriter at Travelers Europe, Sharon Glynn, explained that, although increased cybersecurity measures are costly, “when you consider the costs of a successful attack – reputation, rehabilitation, business interruption, restoration, to name but a few – the spend starts to look more like an investment”.
Read this Wrestle with PESTLE to discover more about the threats of cybersecurity.
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Interest rates
The cost-of-living crisis has been a familiar phrase across news outlets and a stark reality for many since 2021. In 2022, inflation was at its highest rate in 40 years. However, in the 12 months to September 2024, it’s dropped to its lowest rate (1.7%) in three-and-a-half years. To combat inflation, the Bank of England raised interest rates to 5.25% at its peak but, with inflation slowing, rates were cut to 5% in August 2024 and to 4.75% in November 2024. Despite the decrease in inflation, the economic climate remains tough as prices continue to rise.
In essence, higher inflation reduces the purchasing power of both consumers and businesses, which has forced law firms to cut costs. This creates challenges as clients also look to reduce expenses, making it harder for firms to retain customers and attract new business. In many cases, economic uncertainty has a negative effect on workflow. For example, rising interest rates negatively affected the conveyancing sector, with a 23% decrease in transactions in 2022, due to mortgage rates averaging between 4.85% and 5.35%. However, this isn’t the case for all practice areas. RPC associate, Harvey Briggs, explains that “litigation is typically counter-cyclical so economic downturns can see increased litigation”.
As economic downturns cause uncertainty in some work areas, law firms must also balance the need to be frugal with the rising cost of recruiting and retaining talent. Across the UK, wage growth was at its slowest rate for more than two years between June and August 2024. However, in 2024, newly qualified (NQ) salaries have been driven up in the ongoing war for talent. Magic circle law firms are now paying NQs £150,000 and many US firms are paying even more, with NQ salaries reaching £180,000.
In a bid to retain partners and senior associates, we’ve also seen law firms increase salaries at the more senior end of the business. The Law Society’s Financial Benchmarking Survey found that the total salary costs, as a percentage of fee income, increased by 0.2% from 2022 to 2023. The survey also offered some reassurance for firms as, while firms’ chargeable hours decreased by 2.5%, profits declined only marginally. Paul Bennett, chair of the Law Society’s leadership and management section, said: “The resilience of law firms shines through this year’s survey. Economically, it’s a tough period, but firms are doing well.” In these challenging times, the legal profession continues to adapt and thrive, demonstrating resilience and innovation in the face of economic adversity.
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Diversity and inclusion
Aside from the external factors, there are several internal issues at the heart of the legal profession – one of which is diversity and inclusion. As law firms and barristers’ chambers continue to shout about the work they’re doing in this area, we take a look at the reported statistics to give you an insight into the progress being made.
Ethnicity
Of all solicitors in England and Wales, 12% are Asian, 3% are Black, 3% are from mixed/multiple ethnic groups and 1% are from other ethnic backgrounds, according to the Solicitors Regulation Authority’s (SRA) latest data. When taking into account seniority, 13% of partners are Asian, 3% are Black, 2% are from mixed/multiple ethnic backgrounds and 1% are from other ethnic groups. At firms with 50 or more partners, only 8% are from a Black, Asian and minority ethnic background – up 1% on last year’s data. Meanwhile, 76% of full-equity partners are white. These figures paint a stark comparison of the discrepancies in the profession and highlight that the issue requires so much more than just improving access to the profession.
At the Bar, although the disparity remains, there have been incremental increases to the number of barristers from minority ethnic backgrounds, including those who are King’s Counsel (KC). Since December 2022, the percentage of barristers from minority ethnic backgrounds (for non KCs) has risen from 16.9% to 17.5% and for KCs the percentage is up from 10.5% to 10.7%, according to the Bar Standards Board’s (BSB) latest report. Elsewhere, people from minority ethnic backgrounds made up 24.9% of pupils – up from 22.7%.
The report also highlights the disparity between the overall percentage of barristers from minority ethnic backgrounds and the percentage of KCs from the same background. When considering the drivers of this inequity, the BSB cites the lower percentage of people from minority ethnic backgrounds entering the profession in the past and barriers to progression to KC.
Gender
When looking at sex, women make up 53% of all practising solicitors in law firms and 62% of solicitors overall (both up 1% on last year), according to the SRA’s data. However, while on the surface the representation of women in the profession looks positive, when you look into female representation at partner level, only 32% of women are full-equity partners.
At the Bar, the BSB report found that women accounted for 40.6% of the barrister population in 2023, with the proportion of female KCs increasing to 20.3% and the percentage of female pupils sitting at 59.4% – a similar picture to that of solicitors’ law firms in terms of female lawyers being represented less at more senior levels.
According to the most recent figures published by the Office for National Statistics (ONS), female solicitors and lawyers earn 10.1% less than men. For barristers and judges, the figure nearly triples, with women earning 29.1% less than men. Despite acknowledging that the introduction of mandatory reporting in 2017 has seen some positive movement, former Law Society President Nick Emmerson cites some of the barriers that women face, including “lack of support around maternity leave, return to work, flexible working and shared parental leave”. Speaking to the Law Gazette, Dana Denis-Smith explains that the issue seems to be that firms aren’t making the structural changes to address the gap, for example to increase the number of women leaders “you need to give female partners the meatier clients” but instead she says that “firms are in a vicious circle of explaining gender inequality away”.
Disability
Disability is an area that’s often overlooked when considering diversity and inclusion in the workplace – evidenced by the length of this section alone given the amount of data available. According to recent government stats, there were 5.1 million disabled people in employment in the UK in Q2 2023 – an increase of 2.2 million since the same quarter in 2013. These stats refer to the general population across the UK but, when refocusing on the legal profession, the SRA’s latest figures show that 6% of all lawyers are disabled, compared to 16% of the UK workforce. As with most diversity strands, there are fewer disabled people at senior levels, with just 5% of full-equity partners having declared a disability.
Meanwhile, at the Bar, the proportion of pupils who said they had a disability increased from 12.5% in 2022 to 15.7% in 2023. The BSB’s report indicates that disabled practitioners continue to be underrepresented at the Bar, with just 8.2% of those who provided information declaring a disability.
Sexual orientation and gender identity
The SRA’s latest diversity data shows that the percentage of lawyers who are lesbian or gay now sits at 2.6%, with 1.4% of lawyers identifying as bisexual. Of partners in law firms, 0.7% said they’re bisexual and 2.3% said they’re lesbian or gay. Nearly 12% of lawyers in small firms (ie, one-partner firms) said they’d prefer not to state their sexuality, while 4.9% of lawyers in larger firms (ie, more than 50 partners) said the same. The SRA also found that 0.5% of lawyers said they have a gender identity that’s different from their sex registered at birth – a figure that’s fallen nearly 2% from 2.4% in 2017.
The Bar paints a similar picture. Of those at the more junior end of the profession, 12.6% of pupils said they were either lesbian, gay, bisexual or another sexual orientation (not including heterosexual), according to data set out in the BSB’s latest diversity report. Just over 7% of non-KC barristers and only 5.3% of KCs said the same. Elsewhere, nearly half of practitioners didn’t provide a response on gender identity for the BSB’s report, with around 0.2% of practitioners (including non-respondents) saying they had a different gender identity to the one registered at birth.
Social mobility
More and more law firms have begun refocusing their diversity efforts on improving social mobility within the legal profession – whether that’s through introducing contextual recruitment practices, creating solicitor apprenticeships or increasing opportunities for paralegals to further their careers at law firms. Despite movement in the right direction (evidenced below), there remains a long way to go and the stats speak to that.
With parental occupation considered the most reliable indicator of social mobility by the Social Mobility Commission, the SRA has reported its findings in this area in accordance with the national approach. The regulator found that the proportion of lawyers from a professional background has fallen 1% to 57%, while those from an intermediate and lower socioeconomic background has increased by 1% to 13% and 18%, respectively.
When looking at the schools that lawyers attended, the SRA noticed a decrease (21%, down from 22%) in the number of lawyers who attended an independent/fee-paying school. On the other hand, those who attended a state school increased to 64% and those who attended a school outside the UK also increased to 9%.
However, at the Bar, there remains a “disproportionately high percentage” of barristers who’d attended UK independent schools between the ages of 11 to 18. Including non-respondents, the BSB reports that 19.4% of the Bar had attended an independent school, compared with around 6.5% of school children in England at any age. As of December 2023 (and excluding non-responses), 0.5% of the Bar hadn’t been to university, 54.2% had a parent who’d attended university and 45.8% didn’t have a parent who’d attended university.
Looking forward
As well as barriers into the profession, it’s evident that there are many obstacles making entry to the profession and progression more difficult for those from various backgrounds. Programmes like the Law Society of England and Wales’ Diversity Access Scheme, which recently awarded 14 aspiring solicitors a scholarship to help them in their journey towards qualification, as well as schemes such as The 93% Club, Able Interns and Bridging the Bar help to drive the change necessary to create a legal profession that’s representative of the society it serves.
You can head to LawCareers.Net’s Diversity hub, sponsored by Gowling WLG (UK) LLP, for regular updates to keep you in the know regarding what law firms, chambers and legal education providers are doing to remove existing (often invisible) barriers and work towards a more diverse and inclusive profession.
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Education and training trends
The Solicitors Qualifying Exam (SQE) has dominated the education/training trends conversation over the past few years, but with it have come a host of other talking points, including the increase in firms offering level 7 solicitor apprenticeships to improve access to the profession and the launch of graduate solicitor apprenticeships. The solicitor apprenticeship offering has been on the rise for a number of years, with several in-house legal teams offering the option too. It’s an often-overlooked pathway to qualification but, on successful completion, it leads to the same outcome as the more traditional university/training contract route: that is, qualification as a solicitor. As part of this drive, in the summer of 2023, more than 50 City law firms joined City Century – an apprenticeship initiative designed to increase the number of solicitor apprentices entering the City of London. Following the launch last year:
- US firm Weil, Gotshal & Manges (London) LLP introduced a solicitor apprenticeship programme for two successful applicants;
- Freshfields Bruckhaus Deringer LLP became the latest magic circle law firm to introduce a solicitor apprenticeship programme, with plans to recruit up to six apprentices in September 2025 who’ll be based at the firm’s London office;
- Shoosmiths launched its solicitor apprenticeship pilot scheme, which began in September 2024 and is being hosted at the firm’s Birmingham office; and
- international law firm RPC expanded its current solicitor apprenticeship programme to London in a bid to “boost access and diversity within the legal profession” – the first cohort is due to start in September 2025.
Alongside the rise in law firms offering solicitor apprenticeships, a number of firms have recently introduced the graduate solicitor apprenticeship – a training programme that’s come about following the introduction of the SQE and will work in a very similar way to the traditional training contract.
Find out more about the difference between the solicitor apprenticeship and graduate apprenticeship in this LCN Says. Plus, read this Oracle to find out about the differences between the graduate solicitor apprenticeship and training contract. For information on the latest SQE pass rates, head to LawCareers.Net’s News section or the SQE hub.
Another interesting development to note is the government’s planned reforms to the apprenticeship system. As part of the government’s plans, a new growth and skills levy is due to be introduced to replace the existing apprenticeship levy and include new foundation apprenticeships. As a result, employers are being asked to rebalance their funding for apprenticeships, with a focus on investing in younger workers, which will also require businesses to fund their level 7 apprenticeships.
While the majority of the changes that make up the reforms look promising, and in line with the government’s pledge to improve investment in young people, the reform outlined above has been met with some backlash over its impact on social mobility. Joanna Hughes, a full-time champion of solicitor apprenticeships and co-lead of City Century (among other accolades), took to LinkedIn to reassure current apprentices following the government’s announcement. Hughes recognised that while the announcement included lots of “GOOD stuff”, it would also “potentially worry many 18 and 19-year-olds from low socioeconomic backgrounds who have just started their level 7 apprenticeships”. Despite these announcements, it hasn’t yet been revealed which level 7 apprenticeships will no longer be eligible for apprenticeship levy funding.
On the other side of the profession, there have been continued whispers of barrister apprenticeships making an appearance at some point too; however, this hasn’t yet come to fruition.
Earlier this year, the Bar Standards Board (BSB) published new proposals – one of which would enable applicants without a degree to apply for entry onto a vocational course. In April 2024, however, the proposals were met with resistance from the Bar Council, which said that the reforms would “lower standards, make the assessment of academic standards equivalent to degrees more difficult and transfer decisions away from the BSB”. It added that the BSB should continue to set the qualification standards and retain decision-making powers, while maintaining that the current minimum thresholds and equivalent qualifications standards should remain unchanged.
It’s still unclear as to whether barrister apprenticeships will happen but, if they do, LawCareers.Net will make sure you know about it.
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Hybrid working and the war for talent
A big upgrade to workers’ rights has been published by the UK government, which will see the law change to make flexible working the “default where practical”. This includes having flexible start and finish times and the option to work from home – employers will be able to refuse the request only if they can prove it’s “unreasonable”. Although the measures aren’t expected to reach the statute book until autumn 2026 at the earliest due to the consultation required, it’ll be interesting to see how legal employers respond to these new rights, coupled with the changing priorities and values of the next generation of lawyers.
According to a recent benchmarking study led by Legal IT Insider and Philips, 88% of law firms have some form of policy in place to support various hybrid working models, including:
- staff working more than half the week in the office (52%);
- staff working less than half the week in the office (23%); and
- staff having the option to choose their hours of working from home (23%).
As ever, with the hybrid approach come issues like presenteeism, especially where firms are monitoring office attendance through individual key cards. LawCare CEO Elizabeth Rimmer says such measures could lead to “distrust” and, subsequently, “anxiety and stress, undermining mental health and job performance”. This is backed up by Deloitte’s Global 2024 Gen Z and Millennial Survey, which found that 44% of both generation Z (gen Z) and millennials said that not having control over how or where they conduct work contributed to feelings of anxiety or stress.
Law firms with hybrid options are, for the most part, a much more attractive option for the next generation of lawyers who are placing an increasing emphasis on work/life balance – in fact, Deloitte’s survey found that it’s their top consideration when choosing an employer. As part of the survey, respondents were also asked about the return to office debate, with 51% of gen Z and 57% of millennials now working fully onsite. Of those who are now back in the office full time, some said they felt more engaged and connected, and others cited a better routine and structure at work as a benefit. Meanwhile, other respondents said mandating a return to the office has negatively impacted their finances, productivity and/or mental wellbeing.
When we speak to lawyers, it seems that many firms are continuing to embrace hybrid working options – much like the benchmarking study mentioned above suggests – but we know this isn’t the case for all law firms. There’s no denying the benefits that being in an office environment can offer, such as those outlined above, as well as learning by osmosis and networking, but the flexibility that comes with the hybrid approach makes for a much more inclusive profession, particularly for those who are neurodivergent or have caring responsibilities that make being at home on certain days easier.
As the war for talent continues, law firms must take these preferences and values into consideration. It seems one of the stand-out approaches so far has been to hike pay for trainees, solicitor apprentices and newly qualified lawyers alike. Elsewhere, Manchester was ranked the top location for hybrid and remote roles in the legal profession as part of research conducted by The University of Law. Looking at the results of the research, John Watkins, director of employability at the university, says “it will be interesting to see the migration of legal talent should remote and hybrid working continue to be so popular”. He adds: “We could very well see a shift away from the traditional cities and towards more regional growth.”
Although hybrid work is now not an uncommon landscape, many employers are looking at ways to get their employees back into the office full time but is this the right move? Plus, the question on most people’s lips: how does this work in a world where demands for flexible working options are on the rise?
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Mergers
This year has been a strong one for law firm mergers as, despite there being fewer deals, the combined value of transactions has increased. One of the most significant deals was the merger between Allen & Overy LLP and US firm Shearman & Sterling to form A&O Shearman, which closed on 1 May 2024. This consolidation created a combined revenue of around $3.5 billion, putting it among the top five law firms in the world. Other notable mergers include:
- Radcliffe Lebrasseur joined with Weightmans LLP;
- Mischon de Reya LLP merged with Taylor Vinters;
- Shoosmiths transferred its business-to-business recoveries division to Solaris Law;
- Irwin Mitchell merged with Scottish firm Wright, Johnston & Mackenzie; and
- Paul Hastings (Europe) LLP absorbed Paris boutique Antonin Lévy & Associés.
Research by accountancy firm Hazelwoods found that 121 mergers took place in 2023, a small drop compared to the 122 mergers in 2022, but an increase from the 99 mergers recorded in 2021, which was a 10-year low point. The report also highlighted that AI could have an impact on future mergers, with Ian Johnson, a partner from Hazlewoods, explaining that as the requirement for AI in the legal profession increases, “some firms may well decide that being part of a larger firm is the only way to make investments on the scale needed”.
Read this Feature for a guide to law firm mergers.
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Legal developments – talking points
Renters’ Rights Bill
The Renters’ Rights Bill is making headway as it progresses through parliament. On 9 October 2024, Deputy Prime Minister Angela Rayner put the bill to members of parliament for its second reading less than a month after the bill had first been introduced.
The Labour government’s Renters’ Rights Bill comes after the previous government had failed to get its Renters’ Reform Bill through. Rayner explained that the new bill is “fundamentally different” and “goes above and beyond” what the Conservative government had been offering. Where the previous bill had “last-minute caveats”, the new bill will ban Section 21 ‘no-fault’ evictions across new and existing tenancies at the same time, “immediately tackling one of the leading causes of homelessness”. This change is designed to provide 11 million private renters with immediate security and assurance. On top of this, it’ll also clamp down on unfair rent increases by giving tribunals the power to defer rent increases by up to two months, and the Decent Homes Standard and Awaab’s Law will be extended to the private sector to reduce the number of poor-quality privately rented homes and empower tenants to raise concerns about their homes.
Rayner says she’s “determined to get this bill into law as soon as possible” and assures the public that the government will “deliver” on its promise to ensure that families are able to “put down roots” and enable children to “grow up in healthy homes”.
Nick Ballard, head organiser at Acorn (a community union that campaigns on rental and housing issues), welcomes the new bill but urges the government to go further by introducing “open-ended tenancies so tenants can plan for a long-term future in their home but have the flexibility to leave if they want”. Looking ahead, Ben Beadle, chief executive of the National Residential Landlords Association, explains that once the bill is passed, tenancy agreements will need updating, letting agent staff and landlords will need to undergo training, while mortgage and insurance providers will need to adjust policies and rates. Beadle calls for the government to “publish guidance” to support the changes required to take place.
Building Safety Act
Following the Grenfell Tower tragedy in 2017, reforms to the construction industry were put forward to change the rules and processes that govern building safety. The Building Safety Act (BSA) 2022 was then made law on 1 October 2023, with April 2024 marking “a very significant milestone” as the new building safety regime was fully established.
The act aims to enhance building safety by improving the design, construction and management of higher-risk buildings (ie, buildings with at least two residential units and 18 metres/seven storeys tall). One of the key reforms was the introduction of the Building Safety Regulator (BSR), which was born to oversee safety and standards in all buildings. As part of this, a new building safety regime has been implemented, which will see frequent checks happening throughout the building process – for a building to complete, it’ll need to meet the BSR’s three gateway requirements, which span the planning, construction and completion stage of a build project. The higher-risk building, under the BSA, must be registered with the BSR before anyone can live there.
On top of this, the act also provides clarity on the definition of ‘accountable person’, ‘principal accountable person’ and their duties. For example, an ‘accountable person’ can be an organisation or individual (eg, landlord or management company) “who owns or has a legal obligation to repair any common parts of the building”, including the structure and exterior of the building, corridors and staircases. As well as an accountable person, every building must also have a principal accountable person – this is usually “an organisation, like a commonhold associate, local authority or social housing provider” but it can also be an individual person, such as the owner of the building. The accountability for making sure that duties are carried out and the liability for a building’s safety always remain with the accountable person and principal accountable person.
Although the BSA was introduced into law in October 2023, the construction industry is still grappling with its implications. In fact, Unite Students recently revealed that the BSA’s roll out and “capacity constraints” at the BSR could cause six-month delays to its delivery programme for new student accommodation. Unite Students says it’ll continue to work with BSR “to deliver safe and secure homes for students” and expects to “undertake works on 12 further properties in 2025”. There have also been complications around what’s defined as a ‘higher-risk building’ under the BSA. A judge recently ruled in a test case that roof gardens count as an additional storey, after criticising the “evolution, amendment, addition to and in some cases withdrawal” of government guidance. The judge adds that it’s “challenging to know which is the latest version or to find notes that covers certain areas”.
Improved market access for solicitors and firms
The Law Society has successfully negotiated three international trade agreements to improve market access for solicitors and firms.
At the end of July 2024, the Japanese Ministry of Justice introduced two measures to streamline its previously lengthy process by which foreign lawyers register in Japan. The new measures mean law firms won’t have to submit as many documents on behalf of applicants and aim to make it easier for foreign lawyers who were previously registered in Japan to reapply.
You can find out more about the streamlined process via LawCareers.Net’s News and the Law Society of England and Wales’ website.
In September, Greece passed a new law to enable UK lawyers to practise there. Analysis of the EU-UK Trade and Cooperation Agreement found that under the agreement, Greece had committed “to allowing UK lawyers to practice home country law and public international law under home title”. Alongside, UK government officials, law firms and the Greek Bar Associations of Athens and Piraeus, the Law Society put in several years of work to get to this point for its members.
Finally, the Law Society and Malaysian Bar Council have agreed to extend foreign law firm licences from three to five years for firms operating in the market already. The move will enable law firms to establish themselves in the Malaysian market and provides British lawyers with the chance to work abroad and expand their professional networks.
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Major cases
Here’s a small sample of important and fascinating cases that’ve been in the news over the past year. You can use them as a starting point for your own research and don’t forget to follow the stories you’re interested in as they develop.
Baby Reindeer defamation case
Netflix is currently facing a defamation lawsuit relating to its hit show, Baby Reindeer. The drama series claims to be a true story, which is allegedly based on the experiences of Richard Gadd, Baby Reindeer’s creator and lead actor. It’s been argued that Fiona Harvey, a Scottish lawyer, is the person who inspired Martha – the character who stalks Richard in the show. Harvey has claimed that she was never convicted of stalking, despite the show depicting Martha pleading guilty and being sentenced in court. As a result, Harvey has accused Netflix of defamation, intentional infliction of emotional distress and violations of privacy. Gadd won’t act as a defendant but has filed a response, stating: “Martha Scott is not Fiona Harvey. Like all characters in the series, Martha is a fictional character with fictional personality traits that are very different than Harvey’s.” Netflix has stated its intent to stand by Gadd’s “right to tell his story” but has faced criticism over the efficacy of its safeguarding principles. A federal judge has set a court date for 6 May 2025.
McDonald’s v Supermac’s
In June, McDonald’s forfeited its exclusive trademark, losing the exclusive right to refer to chicken burgers as ‘Big Macs’ or to use ‘Big Mac’ as part of a restaurant or chain name. In 1996, the fast-food chain trademarked the term ‘Big Mac’ as a nickname for larger burger sandwiches. However, Irish fast-food chain Supermac’s challenged this trademark in 2017, leading to a legal battle that came to conclusion in June 2024. The dispute began when McDonald’s blocked Supermac’s from registering its restaurant name as a trademark, with a view to expand outside of Ireland. Supermac’s founder and managing director, Pat McDonagh, called the situation a “David versus Goliath scenario”. Supermac’s accused McDonald’s of “bullying” smaller firms and aiming to stifle competition.
Following a ruling from the European Court of Justice in June 2024, other chains are now free to use the trademark in relation to restaurant names and poultry products. The court found that McDonald’s hadn’t made use of the trademark in this way for a continuous period of five years. However, McDonald’s has retained the trademark in reference to red-meat burgers, which was what a ‘Big Mac’ originally referred to. In addition, the ruling doesn’t affect the chain’s ability to use the ‘Big Mac’ trademark in the future for a restaurant name or for chicken burgers, should it choose to. The two chains are still in dispute over the UK trademark, as this ruling doesn’t apply to the UK following Brexit.
Tesco v USDAW
In September, Tesco lost a legal battle against the Union of Shop, Distributive and Allied Workers (USDAW) union over its ‘fire and rehire’ plans. This dispute came after the supermarket proposed firing staff at some distribution centres and rehiring them on lower pay in 2021. The union argued that the retained pay promised to employees in their contracts should be ongoing, while Tesco claimed it was a "contractual mechanism" that could be changed. The Supreme Court ruled in favour of the union, stating that it was "inconceivable" for Tesco to have the right to fire and rehire workers whenever it suited its business purposes. The judges highlighted that the use of the word ‘permanent’ in the workers’ contract means that firing and rehiring would’ve “been viewed, objectively, as unrealistic and as flouting industrial common sense by both sides”. This case has implications for around 50 employees at the affected distribution centres. The practice of fire and rehire gained attention during the pandemic, with several companies attempting to dismiss workers and rehire them on worse terms. The Labour government pledged to introduce legislation to ban this practice in its manifesto.
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Ellie Nicholl is a content & engagement coordinator and Olivia Partridge is content manager at LawCareers.Net.
