Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Tougher Times Ahead For Kiwi Law Firms

Tougher Times Ahead For Kiwi Law Firms
A tight market may herald a new-look for kiwi law firms
LawFuel - The Law Jobs and News Wire - LawFuel, the legal jobs site has spoken with a number of recruiters and law firm heads who indicate that there is considerable belt-tightening occurring. A significant number of legal executives involved in conveyancing have already been released from mainly smaller law practices while larger firms like DLA Phillips Fox have also made some qualified lawyers redundant.

Legal consultant Ashley Balls says firms are very concerned about the work levels. “I have yet to come across a firm who are not genuinely concerned – the trouble is most haven’t a clue on how to react. That is a little harsh but fairly close to the truth. Managing WIP & Debtors has become problem for many with even good clients holding out for 60+ days before payment.”

Further, with a tight legal market in London, many kiwi lawyers seeking overseas work are going to find a hard time while those already there and looking to return home are likely to find increasing difficulty in locating the type of work they want.

And in the US, where there have been widespread ‘releases’ of associates and others, major law firms have begun capping associate salaries, which have escalated hugely during the recent boom years.

A major difference in the current slowdown for law firms is that previously law firms were able to offset the dropoff in corporate capital raising and M&A activity with insolvency and litigation work. But firms are now cutting debt and reducing expenditure, which is having a significant effect on law firm revenues.

Ron Pol of TeamFactors , an experienced professional services practice consultant with with extensive law firm knowledge, says although we are now just starting to see a slight upturn in insolvency work it is not enough.
“Our predictions that litigation and insolvency work wouldn’t fully offset the downturn have already been reflected in unprecedented numbers of redundancies in litigation departments across the world; a process that seems to be continuing.”

“Many law firms have begun to cut costs and retrench staff to preserve core profitability,” he says.

See the full article:


© Scoop Media

Business Headlines | Sci-Tech Headlines


Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>