The investigation, formally classified as an "inquiry" by Worksafe, is understood to be the first safety investigation into a law firm and has sent ripples across the industry, which has developed a reputation for overwork and stress, as well as a hyper-competitive environment for graduate positions. WorkSafe is Victoria's safety regulator, which makes sure employers comply with occupational health and safety.

KWM's Melbourne offices have inspector notices posted on every floor, which say the firm may be in breach of the Occupational Health & Safety Act in relation to fatigue and overworking staff.

If the law firm is found to be in breach of the act, WorkSafe can seek a maximum $285,426 fine for individuals, including partners, or issue enforceable undertakings.

It's understood KWM first became aware of the WorkSafe complaint on August 9. Later that month, WorkSafe representatives met with KWM at their office to further discuss the complaint. KWM must formally respond to the complaint by mid-November.

KWM chief executive partner Berkeley Cox said the firm had taken "deliberate steps to manage" the royal commission demands, including allocating resources from other parts of the firm, appointing additional permanent legal staff, work rosters, and using a casual workforce. Janie Barrett

Staff wellbeing 'paramount'

KWM chief executive partner Berkeley Cox, who has previously admitted it was "quite challenging" to ensure staff wellbeing amid the royal commission's fierce deadlines, said no formal complaints had been made internally. However, he said the firm had taken "deliberate steps to manage" the royal commission demands. These included allocating resources from other parts of the firm, appointing additional permanent legal staff, work rosters, and using a casual workforce.

"We are taking this incredibly seriously. The wellbeing of our staff is absolutely paramount," he said. "It's sad that someone has gotten to the point that they felt they needed to make the complaint. We respect that."


Mr Cox said the firm wasn't treating the issues as being specific to graduates but as it applied to all employees, including partners and senior lawyers.

He reiterated that the royal commission "did throw up unusual demands in the context of the enormous number of documents that needed to be produced in a short space of time".

"The commission itself was under significant pressure, that led to significant pressure on our clients, which led to significant pressure on our people."

The Hayne royal commission finished its sixth round of hearings in September, with the focus on general and life insurance. During 2018, AMP has estimated it will spend about $26 million for the royal commission and related costs, which includes legal fees.

The KWM complaint comes as there is an increasing discussion around the mental health of lawyers in high-pressure environments.

The Tristan Jepson Memorial Foundation released guidelines aimed at better working environments.

'Warning sign for all law firms'

KWM signed up to the guidelines in 2015 along with more than 100 law firms and other businesses. The foundation changed its name to Minds Count Foundation July this year.


Mr Cox said "now it's a good time to take a fresh look at where we are more broadly".

"The 24-7 nature of technology and the pressure generally on people makes us focus more deliberately on the desire for us as a firm to focus on individual personal growth and wellbeing," he said.

A WorkSafe spokesman said in response to questions from The Australian Financial Review that ​"WorkSafe has been made aware of an alleged health and safety issue and is making inquiries".

Health and safety expert, Clyde & Co partner Michael Tooma, said the WorkSafe action into KWM was a first for the legal industry.

"This is a very significant development and should be a warning sign for all law firms," he said. "What it will bring into focus is the drive for billable hours and the health impact on lawyers, particularly younger lawyers who have to put in the hours.

"It's a challenge that the industry has been trying to deal with for some years and it's about time we tackle it head on."

He said the inquiry may even lead to the death of billable hours, given that the practice offered a "meticulous" record of work times.

sarah.thompson@fairfaxmedia.com.au | jemima.whyte@fairfaxmedia.com.au | david.marin-guzman@fairfaxmedia.com.au