Becoming a locum lawyer can be an exciting prospect for those seeking a change within the legal profession.
Many people want increased flexibility, greater earning potential and the challenge of different projects. However, it's important to know what you're getting into before making any major decisions.
What to Expect
As a locum, you will work on a project-by-project basis. This can be short-term or for an extended period with the same firm.
Short term locum roles are often holiday or sickness cover, or to cover during a busy period. Longer term roles are usually to cover maternity leave or covering whilst a firm recruits permanently.
You may be paid by the hour or day depending on the nature of the work. We cover payment methods in more detail below.
Earnings are typically much greater than equivalent permanent roles to counter this and other permanent employment benefits. Demand can be subject to market conditions and it is important to prepare accordingly.
For example, since the COVID-19 pandemic, like in many sectors, the legal market has experienced a general shortage of staff. This 'candidate-driven' recruitment market has meant the demand for interim and locum legal professionals is high. It’s an excellent time to consider this route.
Payment
Payment as a locum is on a weekly basis, unless agreed otherwise. You will work a week, submit your hours for approval once your working week is complete and then receive payment shortly afterwards.
Timeframes for each payment method can vary and are outlined below but are typically no later than seven days after submitting your hours.
With regards to payment methods for locum lawyers, it's important to know what works best for you and your financial needs.
Self Employed
Many freelancers in the UK work as self-employed, otherwise known as sole-traders.
When it comes to payment methods for locum solicitors, being self-employed is the most common. This means that you'll be responsible for managing your own finances and invoicing clients directly. It's important to keep track of your time and billable hours so that you can accurately invoice and ensure that you're getting paid correctly.
As a sole-trader your ‘trade’ and ‘you’ are effectively the same legal entity, whereas setting up a limited company creates a separate legal entity.
When invoicing the firm directly, as the recruitment agency we have no control over exactly when you will receive payment. We always ask the firm to make payment promptly, ideally within a few days.
Setting up a Limited Company
Setting up a limited company is an alternative route for many locums.
A limited company creates a separate legal entity. Your relationship with that company can be as a shareholder, a director, and an employee (the company you own, can also employ you, but doesn’t have to).
As a director you do have certain prescribed legal responsibilities. Provided you are being lawful and diligent, you’ll find it hard, but not impossible, to end up the wrong side of the law. The majority of Limited company contractors will utilise the services of an Accountant to ensure their legal obligations are fulfilled.
One of the attractions limited companies have over self-employment is how you can manage the way you extract money from the business to pay less tax and National Insurance. This is done using a combination of salary and dividends, and financial advice should be sought. If earning enough, this can be worth the extra effort versus being a sole-trader.
However, if you do choose to go down this route, the government's IR35 rules must be followed to ensure compliance. It is vital that you ensure that your working arrangements don’t in fact constitute disguised employment or become disguised as the role continues.
As the agency, we would work with you to ensure the IR35 status is clear for each role. We would also advise speaking with an IR35 specialist; a lot of Accountants can help with this.
As a Limited company, you will also invoice and receive payment on a weekly basis.
Umbrella Company
For many, particularly those starting out, operating through an umbrella company can be a stress-free solution to contracting. They can also be useful for short-term temporary contracts, where it would be impractical setting up a limited company.
Through an umbrella company, you will complete a timesheet and be paid weekly. The umbrella company will handle your payments and taxation in the most efficient manner, so that you don't have to file self-assessments or deal with an accountant.
You are paid regardless of whether the firm have paid, and all payments are completed via PAYE. This means that Income Tax, National Insurance contributions (NICs), and other statutory deductions are dealt with on your behalf. This also means that you don’t need to worry about IR35.
The umbrella company will deduct their service fee from your pay each week, prior to payment. This fee will vary depending on the company you use.
As you are deemed an employee of the umbrella company, many also offer benefits such as pension scheme enrolment, statutory sick and maternity pay as well as employee discounts.
Most umbrella companies are essentially 'contractor accountancy firms'. This means they can also advise on setting up a Limited company if this was your preferred route.
Whilst it does come at a small cost and is the most uncommon route for locums, using an umbrella company can be a good way to try out this new career path.
Note - at Spirehouse, we will only work with FCSA accredited umbrella companies.
Costs
While there are certainly financial benefits to becoming a locum lawyer, it's also important to consider the potential costs. Typically, you need to factor in travel expenses and potential downtime between contracts each year.
Travel can be more common at first, as it's essential to build up experience, reputation and a client base. This will help increase your value as a professional and present more opportunities in the future. Travel costs are typically factored into your hourly rate, rather than charged as an additional expense.
If work is slow, you may struggle to cover your expenses without a steady pay cheque. For this reason, we recommend building a reserve of funds to access, should you need it.
Whilst we can't promise periods without work, if you are professional, work hard and receive good feedback from assignments, it's unlikely you will have an extended time without income.
Flexibility
One major benefit of working as a locum lawyer is the ability to have a flexible schedule. You can choose when and where you want to work, allowing you to maintain a healthy work-life balance.
Many locums take enjoyment from working all over the country, often staying in hotels, B&Bs or Airbnb's, whereas many choose to stay in their local area.
Holidays are an important consideration as a locum too. As you are not paid when you are on leave, financially you will need to be prepared to take time off. On the contrary, you may find yourself taking a booking for weeks you had planned to take off. Sometimes it can be difficult to say no.
Our advice with holidays is simply to plan ahead. If you are clear about holiday dates in advance, as you would be in permanent employment, then you can be clear about when you can and can't work. It may mean you can't take a short-term booking to cover the same dates, but it shouldn't have any impact on a longer term role if handled correctly.
Personal appointments are to be expected during assignments. If these are known in advance, please let us and your manager know at the earliest opportunity.
Rates of Pay
Rates in the same practice area can vary hugely between firm, location and role requirements. Likewise, longevity, caseload and level of remote working may impact what you choose to charge.
Many sectors of the economy are experiencing staff shortages since COVID-19 and the legal sector is no different. This demand, combined with factors such as the SDLT holiday and the cost of living crisis, means we have seen a continued increase in hourly rates in recent years.
Additionally, some practice areas also experience seasonal demand. For example, during the summer months we see a significant increase in demand for holiday cover bookings, which in turn sees many locums increase their hourly rate.
Therefore, from a rate perspective, we kindly ask you to contact us and ask.
What do firms look for?
As a locum, you will be expected to manage another individual’s caseload and handle new instructions, often at short notice and with little guidance. Many roles don't have the luxury of a handover and you will encounter difference systems, processes and styles of working.
You should also be aware that for some firms, whilst you are an essential resource, you may also be deemed an expensive one.
For this reason, firms wish to see experience, proven ability in your practice area and be instilled with the confidence that you can hit the ground running.
In the long-term, repeat bookings and good references are considered a good indicator of the quality of a locum.
Qualification is not essential for many roles and we work with locums of varying levels of experience.
Notice Period
The most common arrangement for notice period during a locum assignment is one week from both parties.
For short-term bookings such as those that are only one week in length, there may be no notice period. For longer term roles, the notice period may be increased.
As a locum you do need to be aware of two points regarding notice. Firstly, bookings can be cancelled prior to commencement with no notice. Secondly, there is always the chance that an employer will end a contract much sooner than expected with no warning.
In this instance, as your recruitment agency, we will always prioritise your situation to help find another job as soon as possible.
Contracts
Depending on how you are paid will determine how contracts are organised.
If you are being paid directly by the firm, any contract will be agreed directly between the firm and yourself. In this instance, some firms will issue contracts whereas many will be happy with the terms that we provide each party.
If Spirehouse are paying your Limited company, we will issue a contract ahead of the assignment.
If operating through an Umbrella company, the umbrella company are deemed your legal employer and thus you will have a contract directly with them.
CV
As your recruitment agency, we will work with you to tailor your CV specifically for the locum sector.
You should note that if ever returning to permanent employment, many employers can look down upon a locum CV versus someone who has been in consistent permanent employment.
A good recruitment consultant and good references can help you overcome this obstacle, but it is worth keeping in mind.
Professional Indemnity Insurance
Unlike in other professions, Professional Indemnity Insurance through the firm usually covers locum lawyers working on their behalf. At your request, we can check if you will be covered prior to commencing an assignment.
Some locums do take out their own policies to be on the safe side, often using price comparison websites to find the best deal.
Working in Multiple Roles
As a locum, you do have the option to work in multiple assignments, should the hours allow.
Many lawyers will work simultaneous part-time assignments, fee-share arrangements or other legal consultancies alongside being a locum.
If you do choose to do this, it is imperative to ensure that you can be available for each employer as required and can ensure optimal client care.
Don’t take on more hours than you can handle and do not claim the same hours at different employers. Not only is this impossible but also illegal.
Conclusion
Becoming a locum lawyer can be a lucrative and fulfilling career choice, but it's important to weigh the benefits and costs before making the move.
As a locum lawyer, you are able earn more than traditional permanent staff, however there may be times when work is slow. You will need to manage your finances accordingly.
Being a successful locum solicitor requires dedication and hard work. You must be capable of managing your own business while maintaining high-quality legal services. Communication skills and adaptability are key as you'll often be thrown in the deep end.
Despite the challenges, the increased flexibility and variety of work opportunities can be incredibly appealing, especially for those who value autonomy and independence in their careers.
If you have the necessary skills and determination, taking on the role of a locum could be a smart career move with plenty of potential for success.
Interested in becoming a locum?
Please click here to schedule a free locum consultation with our Head of Legal Recruitment, Luke Grant.
Alternatively, please upload your CV or contact Luke directly:
luke@spirehouse.co.uk
07425075040