Law Firms & Fair Treatment: Regulatory Reach & Bite

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LAW FIRMS: Fair Treatment Audits

The SRA’s Fair Treatment rule requires: 

• Every solicitor to treat colleagues fairly and with respect and not to bully, harass or discriminate unfairly against them;
• Managers (Partners/Directors) to challenge behaviour that does not meet this standard.  

Whilst framed in terms of protection and support for colleagues, the SRA crucially refers to the Fair Treatment rule as expanding “on the Principles” set out in its Codes of Conduct.   

Specifically, the Fair Treatment rule directly impacts on the mandatory 2nd and 7th Principles: 

• to uphold public confidence in the legal profession; and 
• to act in the best interests of the clients.    

In other words, this rule goes to the heart of legal regulation and carries significant regulatory bite.  

Regulatory Reach

Whilst the SRA’s Guidance1 frames the Fair Treatment rule in terms of “colleagues’ wellbeing” and “culture”, this is misleading and could, in some quarters, be interpreted as vague ‘virtue-signalling’.   This would be a mistake.

Elsewhere in the Guidance, the SRA is clear: behaviour that breaches this rule represents just as much of a regulatory risk as any other rule because it evidences a risk to clients.   “Risky” behaviour in the workplace as defined by this rule (bullying, harassment and/or discrimination) has the potential to impact detrimentally on client services and outcomes: this type of environment may result in individuals – particularly junior colleagues – making more mistakes and covering them up.  

The rule extends its reach in another way too.  It is not enough to avoid engaging in such behaviour yourself.    Partners/managers are required to challenge ‘unfair’ treatment.  Though the nature of the challenge is not prescribed, managers are required to take effective action.     If they turn a ‘blind eye’ to ‘unfair’ behaviour, they risk breaching this rule and personal sanction.   

Direct Reporting 

As well as the self-reporting obligations that are consistent with any serious breach of the Codes, the SRA encourages individual employees to report alleged breaches of the Fair Treatment rule directly to them.     They do not need to go through internal processes first.    

Building a Culture of Accountability & Compliance

The Guidance makes clear that taking proactive compliance crucial.   

Thorogood HR can support firms to conduct Fair Treatment audits by reviewing supervision, oversight and feedback/appraisal policies and systems.   

Get in touch: claire@thorogoodhr.co.uk & + 44 7855 850 777

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