Trainee solicitors’ minimum salary to be scrapped in favour of £6 per hour
From August 2014 the trainee solicitor minimum salary of £16,650 per (£18,590 for central London jobs) will be scrapped, following a decision this week by the Solicitors Regulation Authority (SRA), which is the independent regulatory body of the Law Society of England and Wales. Law firms must instead pay at least the National Minimum Wage, currently set at £6.8 per hour, bringing the law profession in line with the wider job market.
Industry commentators have said this will amount to a pay cut of £7,000 per year for trainees – a potential 60% drop in earnings, and could mean people from less well-off backgrounds will not be able to pursue a career in the legal profession. In its own summary of feedback, the SRA recognised fears that removing the minimum salary would have a disproportionate effect on women and black and minority ethnic groups.
The board papers admitted there was a risk that employers would decide to cut salary levels as a result of deregulation. However another view is that more firms will be able to employ trainees as the wage costs will be considerably lower.
The SRA voted on May 16 to partially deregulate the trainee solicitor minimum wage which has been in place for three decades. The minimum salary was introduced in 1982 by the Law Society to protect trainees from exploitation and to encourage high quality graduates into the profession. After a consultation which began in January, the SRA board agreed that setting a minimum salary level for trainees above the National Minimum Wage was not in the public interest. In order to minimise the impact, the change will be deferred for two years’ time.
Samantha Barrass, SRA’s executive director, gave a statement thanking everyone who responded to the consultation, “and those who took part in the stakeholder meetings, focus groups, and the online survey for their views and information that were taken into account in reaching this decision”.
She said: “This decision was based on an objective consideration of very full and detailed evidence gathered through a variety of sources.”
In total there were 130 responses to the consultation, around 60 individuals in total attended nine focus group sessions across four cities, and over 1,300 individuals responded to the SRA’s online survey.
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