The Institute of Paralegals is Pushing Government for Extended Paralegal Rights

LONDON, Nov. 23, 2010 /PRNewswire/ -- The IOP is lobbying government to extend paralegal rights and recognition in a number of areas. One area is an amendment to the Employment Rights Act 1996, so as to include paralegals on the statutory list of 'relevant legal advisers' in respect of employment Compromise Agreements ("CAs").

This is not the dry, rather technical, issue it might at first appear.  Right now, employers and employees in dispute are being obliged to use a limited pool of legal advisors whether they wish to or not, and as a result are often obliged to pay more than they ought to for that privilege.

The situation is also inconsistent because senior paralegals are now recognised as having the right to apply to become Employment Tribunal Judges (following IOP representations to the Judicial Appointments Commission - for more information see our 11.10.2010 press release on our Media Centre page - click here). It is remarkable that paralegals can now apply to become judges hearing employment cases, but not fully advise on them.

Background

There is a statutory prohibition on contract terms purporting to deprive employees of the right to bring a claim in respect of employment matters such as unfair dismissal, discrimination and redundancy. An unexpected consequence was that the prohibition effectively made it impossible for employers and employees to reach full and final settlements: especially in redundancy situations.

Government addressed the problem through legislation by creating a special class of settlement agreement (CAs). These are now very common. To protect employees, CAs are only binding in certain criteria are met, one of which is that the employee has received independent legal advice from a specified category of legal adviser (basically qualified lawyers, trade union representatives and representatives of not-for-profit advice organisations).

The latter two groups can designate anyone they want as a representative regardless of experience or qualifications or competence (or manifest lack thereof). Parliament's intention seems to have been to give employees as wide as possible access to advice. Unfortunately back in 1994/95 when the legislation was being drafted, there were not the circa 6,000 paralegal law firms here are now, and paralegals in solicitors' firms were not seen as relevant.

Much has changed in the intervening years. Paralegal law firms give large amounts of employment advice to the public and business. Within solicitors' firms paralegals regularly conduct employment law cases themselves, often acting autonomously. The legislation needs to be updated to reflect this change because as things currently stand:

a) What was meant as an all-inclusive list has become a prohibition. The will of Parliament is not being honoured;

b) Paralegal law firms cannot give the advice their clients need;

c) Alternative business structures may be forced to retain expensive solicitors were less expensive paralegals could do the job with equal competency - no doubt with a detrimental cost to the client; and

d) Solicitors' firms cannot delegate work internally as appropriate since solicitor involvement is obligatory for CAs. This means that either solicitors do the whole case when a paralegal could do it - thus pushing up the cost for the client; or the paralegal does the work up to a certain point, then a solicitor has to take over - leading to inevitable duplication of work. That duplication is either charged to the client, or the solicitor is forced to do work that he/she cannot bill for.

None of these consequences are attractive.

An Institute member who is a Certified Paralegal in a solicitors' firm (and thus who does not want to be named) handles her own employment law clients and cases. She says about CAs:

"It is extremely frustrating. I am unable to become legally qualified as I cannot afford the fees.... I do however have the experience and knowledge to enable me to do the job. I therefore find myself in the situation where I am the person reviewing the Compromise Agreements but am unable to advise the client and sign them off. I do think it would be worthwhile raising the matter with [government], as in my experience, trade union officials appear to be less informed and certainly have less experience than paralegals."

Next Steps

As part of its ongoing dialogue with stakeholders (e.g. the past few weeks the IOP has held discussions with the Master of the Rolls and the Information Commissioner's Office) the Institute will seek to have the Department for Business Innovation & Skills introduce an amendment to the Act. The matter has already been raised with the Employment Tribunal itself.

James O'Connell, Chief Executive at the IOP said: "The statutory list of approved legal advisors was meant to be inclusive. Over time it has become prohibitive. A large number of paralegal law firms now regularly give advice on employment law issues, it is to the consumer detriment that they are unable to create CAs without the unnecessary and often expensive involvement of unwanted third party advisers."

Note to Editors

1. This push for enhanced paralegal rights builds upon the IOP's pioneering work in putting into place the essential foundation stones as commonly required by government: competency standards; a code of conduct; a recognised career path; meaningful professional designations, etc.

2. For background information on the Institute please visit click here.

3. Whilst a growing list of organisations focus on the potentially lucrative paralegal training market, the Institute consistently works on the non-commercial aspects of the developing paralegal profession, e.g. competency standards, career paths, paralegal apprenticeships, management standards for paralegal law firms, dialogue with the judiciary and Bar about dealing with paralegals, regulatory matters and offering careers advice and mentoring programmes to schools etc. 

4. The IOP is the largest paralegal professional body in the UK. It is the oldest incorporated professional body for paralegals in the UK and is the oldest not-for-profit paralegal body in England & Wales. The IOP was formed in 2003 and granted institute status by the government in 2005 (its application being supported by inter alia, The Law Society, Bar Council, Citizens Advice and Crown Prosecution Service). Visit our web site.

5. The Institute also publishes The Paralegal - the UK's leading publication for all paralegals. For more information click here

Quick Links

The Institute of Paralegals web-site: click here

The Paralegal e-journal for paralegals: click here

Institute of Paralegals Contact Information

Within the United Kingdom phone: 020 7099 9122

Outside the United Kingdom phone: +44 20 7099 9122

Within the United Kingdom fax: 020 7904 3750

Outside the United Kingdom fax: +44 20 7904 3750

Website  Email

SOURCE Institute of Paralegals