Legal Practice Notes

Approaches to delivering learning and development— L& D This Practice Note sets out guidance on alternative routes for delivering learning and development ( L& D) and covers: factors to consider when selecting learning methods learning methods learning styles Factors to consider when selecting learning methods A broad spectrum of approaches to learning, training and development can be deployed to address learning needs across the firm. The choice of method for each identified requirement will depend on a range of considerations, including: the nature and urgency of the learning need the learner’s seniority and qualifications the learners’ location, particularly where remote or hybrid working applies the subject matter organisational culture evaluation of the effectiveness of earlier learning activities and events available budgets and associated costs learning styles inclusivity and...

Formulating a learning and development— L& D—policy This Practice Note sets out guidance on creating a learning and development ( L& D) policy. It examines the central considerations, including: what an L& D policy is who holds responsibility for the L& D policy regulatory or statutory obligations that must be met defining the policy’s content and scope determining the policy’s aims methods to develop, draft and roll out the L& D policy alignment with wider business objectives reviewing the L& D policy SRA requirements concerning training contracts fall outside the scope of this Practice Note. What is an L& D policy? An L& D policy expresses the firm’s stance on developing its people. It typically addresses training standards, scope, priorities, and the ways employees can access L& D. An L& D policy is distinct from an L& D plan, which is a...

This Practice Note offers guidance on learning and development ( L& D) plans and includes: the definition of an L& D plan regulatory requirements why using an L& D plan is good practice what an L& D plan should contain budgets and resources the corporate alignment of the L& D plan why an L& D plan may fail how an L& D plan can aid recruitment and the induction of new employees reviewing and monitoring L& D plans What is an L& D plan? An L& D plan outlines: what the firm aims to achieve, eg its objectives the learning outcomes needed to help meet those objectives, eg what staff must change or improve the training courses and other learning events scheduled to deliver each required outcome a timetable of L& D...

Creating a values-driven culture is vital for nurturing a positive workplace in your law firm. It underpins ethical conduct, boosts the appeal and retention of talent, and strengthens client confidence. This guide to shaping a values-driven culture includes: why building a values-driven culture makes good business sense how to identify your core values the most effective ways to communicate those values practical ideas for weaving the values into day-to-day work how to assess performance against the core values how to keep values alive, and refine them, over the longer term Why building a values-driven culture makes good business sense Values act as an ethical and behavioural compass, setting the standards that shape your firm’s culture. Your business goals are the ‘what’, while values are the ‘how’. You already know the targets you’re pursuing—the values set clear...

This Practice Note is aimed at law firms and sets out guidance on running an effective attendance review meeting. The purpose of conducting attendance review meetings Regular attendance reviews are a key element of managing long-term sickness where a member of staff has been away for a prolonged period (usually more than four weeks). The aims of an attendance review meeting are to: examine the reasons behind an employee’s high level of absence; and where absence is linked to a particular health condition, assess how this affects the employee’s capability to perform the role they are employed to do Where a long-term health condition is undermining performance and/or driving absence to the point that the sustainability of continued employment is in doubt, the matter should be managed through periodic attendance reviews rather than by invoking disciplinary...

This Practice Note examines the most common sources of financial instability affecting law firms and explains what actions are needed to ensure issues do not grow into crises. Why might law firms become unsustainable? Ultimately, firms fail when the cash runs out, their banks lose confidence in the business and refuse additional facilities, and alternative finance cannot be secured at short notice. The crunch is usually caused by major outgoings, eg rent, VAT and income tax, or the professional indemnity insurance ( PII) premium becoming due. Although performance differs from firm to firm, many are weak at converting time spent on client matters into cash. In practice, around 120 days can pass between doing the work and receiving payment (this period is called lock-up). Meanwhile, rent and insurance are commonly payable in advance, and staff must be paid at the end of every month. It follows that cash can be...

This Practice Note sets out guidance on why a law firm may require finance and the ways in which such funding might sensibly be obtained. It also looks at what level of debt is sound and when it becomes too high. Why do law firms need finance? All businesses need finance, and law firms are no exception. Funding enables the practice to secure the assets it relies on to conduct its trade. A review of law firm balance sheets shows the principal assets that must be financed are: fixed assets current assets Fixed assets The main fixed assets are: property—many smaller practices purchase their premises, whereas this is less typical for larger firms, which are more likely to rent their office space IT equipment—almost all law firms recognise the need to improve and refresh their IT systems; although such equipment is...

There are five core steps to raising efficiency: identify (define) which process needs improvement measure the issue analyse the information improve the process control, ie embed the new approach so it becomes business as usual Management consultants commonly describe this as the DMAIC framework. This Practice Note takes you through step 4—improve—the issue you identified in Practice Note: Continuous improvement—law firms—step 1—identify and define the problem, measured in Practice Note: Continuous improvement—law firms—step 2—measure the problem, and analysed in Practice Note: Continuous improvement—law firms—step 3—analyse what’s causing the problem. It builds on the case study from steps 2 and 3, which concerns a firm’s new client process. Making the improvement Once you have chosen which issue to address first, you can begin the work of implementing improvements. One method for doing this is the five S’s model. The table below guides you through...

This Practice Note outlines the regulatory considerations when devising a plan or procedure to close your firm, alongside practical support for assembling the plan itself. For additional guidance on succession and exit strategies, including retirement planning, reaching the decision to close, valuing your practice, selling your practice and merging with another, see Practice Note: Succession planning in the wider context of your business. Firm closure plan—compulsory? There is no strict obligation to hold a formal firm closure policy; however, SRA Guidance recommends that, where possible, you plan well in advance when bringing your practice to a close. Larger firms may need a detailed plan and should keep a contingency in place for closure, merger or sale if serious difficulties arise. Client interests are paramount, but the SRA also notes that disorderly closure of a law firm can adversely affect the courts and other parties...

This Practice Note sets out the factors that can cause a law firm to fail and what a bank expects to see if it is to keep backing the firm with further finance. The rationale for cash flow forecasting The immediate danger for any legal practice is exhausting its cash, which can bring the firm down. Receipts from clients are often slow, while outgoings are settled swiftly, leaving firms exposed if cash flow is not tightly managed and capital is inadequate. Failure is most likely at launch, during rapid expansion, or when fee income falls sharply and without warning. By preparing and refreshing cash flow forecasts on a regular basis, the firm can anticipate periods when: it expects to hold excess cash, and it may require additional external funding When these points are planned in advance, securing extra finance is more achievable than approaching the bank only when the...

Why do law firms need budgets and how might they be structured? Just as with any other enterprise, a law firm requires budgets each year to: properly oversee its income and expenditure; and, as a result, reduce the likelihood that the final profit is out of line with expectations. Although a law firm is a professional practice, it remains a business and must be managed with commercial discipline and a business-like approach, day to day and across the financial year. Traditionally, firms generate revenue by selling professional time. While many now employ alternative pricing and service models, most are essentially buying the time of fee earners and reselling that time to clients with the aim of making a profit. A law firm will also carry overheads in addition to the costs of its fee earners......

This Practice Note sets out how to create and roll out a plan to cut absence within your firm. See further Precedent: Example Absence Management Strategy—law firms. What is an absence management strategy? An absence management strategy is an organised, structured method for handling absence, delivered through targeted measures and interventions designed to lower absence levels and the adverse effect on the firm’s business. The purpose of an absence management strategy High rates of absence have a damaging impact on the firm and its workforce as a whole. The aim of an absence management strategy is to bring workplace absence down to an acceptable level that supports, and does not hinder, the firm in achieving its aims and objectives. The benefits of an absence management strategy These include: lower costs linked to absence, including contractual sickness payments, statutory sickness payments and, in some instances, the expense of temporary...

This Practice Note sets out advice on crafting a compelling business case for learning and development ( L& D). For any organisation, L& D is a material outlay. With a multitude of options available, you must define a robust case for any proposed L& D activity to evidence its impact on the bottom line. Doing so secures initial funding and demonstrates continuing value to the organisation over time. To warrant the cost, every L& D initiative should be tightly linked to business goals, ensuring spend is clearly justified. Without this discipline, it is difficult to show how L& D supports commercial performance. The challenges of building a business case for L& D The principal difficulty lies in the asymmetry between clear, quantifiable costs and the more elusive benefits or return on investment ( ROI). When outcomes are poor, the absence of training is an easy...

Updated in June 2025 Introduction With the world’s third-largest nominal GDP, Japan is a preferred springboard for international firms establishing a first foothold in Asia and for locating research and development centres, given the region’s rising significance and the advanced technologies of Japanese companies. It serves as a key regional hub, a gateway to neighbouring Asian markets, and a setter of trends. International companies, especially manufacturers, gain from Japan’s suppliers, from large corporates to small and medium-sized companies, renowned for high-quality products and components. The country offers a mature legal framework with reliable, impartial courts, alongside a stable democratic environment. It is widely recognised as among the safest nations, and boasts sophisticated infrastructure and high-quality medical services. Businesses can adopt multiple structures when setting up in Japan. This guide outlines key considerations for newcomers before commencing operations in Japan. This guide should not be treated as an......

Updated in April 2026 Introduction Italy is a parliamentary republic with a two‑chamber system. The Prime Minister serves as Head of Government. Parliament comprises the Chamber of Deputies and the Senate. The President of the Republic designates the Prime Minister, who must obtain Parliament’s confidence. The President’s term spans seven years. Parliamentary general elections are held every five years. Italy follows a civil law tradition. Its legal sources comprise the Constitution, statutes, secondary legislation, EU regulations (directly applicable and not requiring implementation) and EU directives (which must be enacted through national legislation). The nation is organised into 20 regions. The Constitution grants regions legislative powers in specific fields, including public health, education, agriculture and tourism. Italy is a founding member of the EU. Business environment Italy ranks among the world’s largest economies, typically within the top ten by GDP, and is Europe’s...

Updated in October 2024 Introduction Ireland is regularly placed among the world’s leading destinations for setting up international operations. The country has drawn many of the globe’s largest enterprises to base activities here, spanning global technology, pharmaceuticals, biosciences, manufacturing and financial industries. Ireland’s pull as a business hub stems from the pro-investment stance of successive Irish governments, EU membership, a highly favourable rate of corporation tax, and a talented, adaptable labour force. Together, these and other elements make Ireland a compelling choice for foreign direct investment. Following the UK’s departure from the EU on 1 January 2020, and the end of the transition phase on 31 December 2020 that had kept the UK within the customs union and single market, Ireland’s role as an English-speaking gateway to one of the planet’s largest markets has grown in importance. Several organisations have already...

Embedding learning and development— L& D This Practice Note sets out guidance on embedding learning and development ( L& D) within a firm by aligning it to business strategy, integrating it into everyday practice, and ensuring employees are engaged. Positioning L& D in the firm L& D is often seen as a standalone function, separate from the firm’s daily operations. To deliver best value, it must be integral to the business. Accordingly, it should: be clearly aligned to the business strategy engage employees on an individual basis generate measurable outcomes For more on evaluating the results of L& D, see Practice Note: Building the business case for learning and development. Aligning L& D with the business strategy Strategic L& D objectives and measures must be defined and included in the firm’s business plan for genuine integration. These should cascade to departments and...

Many employers provide staff with insured benefits, including private medical insurance, permanent health insurance ( PHI), life insurance, and directors' and officers' liability insurance. Such arrangements benefit both employer and employee, as the expense of group provision is generally far lower for an organisation than the cost individuals would incur securing equivalent protection themselves. This Practice Note offers a concise outline of the main insured benefits employers commonly make available and the related considerations. For example contract provisions, see Precedent: Clauses—insurance and other benefits, Clause 13 of Precedent: Executive service agreement, and Clause 14 of Precedent: Employment contract basic version. For more detail on directors' and officers' liability insurance, consult Practice Notes: Protecting a director from liability and Directors and officers insurance policies. Insurance benefits are not 'wages' Medical, permanent health and life insurance benefits do not constitute 'wages' for the purposes of sections 13–27 of the...

Managing the human resources in your legal team Overseeing the people element of your legal team is not a task to hand over to HR alone. It is central to legal operations. Your operational remit is to deliver the best outcomes at the lowest viable cost. From a human resources viewpoint, this is achieved by ensuring each matter is handled by the right lawyer—inside or outside the business—at the right time. To make this happen, you must align all resources to minimise legal and compliance risks by: reorganising your in-house team, engaging lawyers with specific expertise and appointing law firms and/or consultants, while carefully monitoring expenditure. If you are worried that you lack the knowledge, inclination or experience to manage people, it is strongly advised that you develop the required capabilities, as this will pay dividends in how your team provides legal services to your...

Until quite recently, outsourcing legal work largely involved approaching external lawyers, virtually cap in hand. Now, the landscape has matured and diversified, leaving in-house lawyers with an array of business and service delivery models to select from. This Practice Note is aimed at in-house lawyers contemplating handing portions of legal work to external suppliers. It forms part of a broader suite of guidance and Precedents created to support your outsourcing decision. It sets out the range of outsourcing options and encourages consideration of: getting more from existing arrangements, including internal resource engaging external counsel alternative legal services providers ( ALSPs) business process outsourcing ( BPO) See also Practice Notes: Legal services outsourcing—in-house lawyers—information gathering Legal services outsourcing—in-house lawyers—which legal services to outsource Exploit what you already have Before turning to outsourcing, can you make better use of what already...