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Thinking about hiring a temporary or contract lawyer?

Jill Pitches explains what you need to know about hiring a helping legal hand.

What are they?

Temporary or contract lawyers are employed by other lawyers to assist in specialist areas. The relationship is not intended to be a permanent one, but one of adaptability and flexibility to cover work over a defined period. So what exactly can they be used for, when should you hire one, and what things do you need to know?

What sort of work do they do?

There are many reasons why you might hire a contract lawyer over a permanent one in an in-house setting. Project based work, for example, can range from a statutory or contracts audit, through to assisting internal business units with the development and implementation of a new product or service.

Often these are mammoth undertakings, with a great deal of work having to be completed within very strict deadlines. Using lawyers on contract, either as an alternative to or to complement external legal secondees, means employers get the benefit of additional expertise without the headache of having to lay off permanent staff when work-flows decrease.

Other times to consider a contract lawyer include:

When work-flows are inconsistent and have many peaks and troughs. Contract lawyers can work as many or as few hours as required, whether working from their own premises or on site.
To increase job satisfaction and permanent staff retention levels. Contract lawyers can help in this regard by being available to cover leave. If staff are being continually stretched because of a lack of resources, contract lawyers can step in and assume those workloads, freeing up permanent staff to work more reasonable hours.
When specialist advice is required. Contract lawyers can be brought in to provide advice on specialist areas of law where the employing lawyer is lacking in knowledge.
When you want to gauge whether a full-time lawyer is in fact required. You can test demand with your contract lawyer, without risking making a permanent hiring decision which is difficult to get out of later.

What things do you need to know?

Having decided your department could now benefit from some contract help, what are the things you need to be aware of when hiring a contract lawyer? Is the process any different from that of hiring a permanent employee?

Contract lawyers are not lawyers who have difficulty getting jobs elsewhere – they are experienced experts who choose the flexibility of contracting, often because they have interests outside of the law they wish to pursue. However, while you could throw your new contract lawyer in the deep end and expect a fairly good result, there are a couple of steps you can take to ensure the workload transition is both smooth and easily manageable.

Ascertain the expected level of involvement. Some firms or departments are happy for the contract lawyer to engage in direct contact with the client; others prefer them to act more as ghost writers. Whichever style you prefer, make sure you communicate this to the contract lawyer so that both parties understand each other’s expectations.
Get the right “fit” for your organisation. This is very important. Contract lawyers are generally very comfortable working in different situations, as different jobs demand. Keep in mind, though, that an in-house assignment might require a different approach to working in a law firm. It is also important to match the size of your organisation to the contract lawyer – often in-house staff at smaller organisations need to be in tune with other aspects of the business beyond the strict legal point of view.

Can I afford a contract lawyer?

Contract lawyers are generally paid an hourly rate, and may or may not be registered for GST. The rate varies according to their experience and expertise, the duration of the assignment, and whether or not they hold a practising certificate. Typical rates can be anywhere from $60.00 to $150.00 p/hr and above. While this rate may seem high, it is important to note that a contract lawyer is paid only for the hours worked directly on the job, so it is easy to assimilate this cost into an overall project budget. Furthermore there aren’t the same management overheads associated with permanent employment, because issues such as fringe benefits, holidays and sick leave don’t feature at all in the contractual relationship. This can make them very cost effective.