THE Law Society of SA has urged new graduates to hold off paying any money to new legal firm adlawgroup until the new business has been given the regulatory green light.

The Advertiser revealed on Tuesday that adlawgroup has launched a new business model under which graduates can pay $22,000 for a two year placement in a legal firm where they will earn fees on a commission basis.

Law Society president Rocco Perrotta was paraphrased as saying the Society had no significant issue with the model “at this stage”, however he said this was not correct.

“Since becoming aware of the existence of adlawgroup, the Law Society’s Ethics and Practice

Committee has looked closely at the model and is taking steps to ascertain more information about it, including from the firm itself,’’ he said.

“The Law Society is concerned about adlawgroup’s business model and the obvious potential for

exploitation of employees, particularly graduates who are amongst the most vulnerable in the legal profession workforce.

The Law Society recommends any potential employee not to pay any money to adlawgroup until, at least, the business model has been given the regulatory green light.’’

NEW LAW BUSINESS MODEL TO LAUNCH IN ADELAIDE

A NEW law firm will open in Adelaide next month, offering recent graduates the opportunity to buy themselves a job for $22,000.

Adlawgroup has set up a website spruiking a new legal business model, which involves a $22,000 fee for a two-year placement, with no base salary.

New lawyers will earn money through the fees they generate and will be expected to bring in their own clients.

The website says the new model provides a ‘gateway opportunity for new lawyers in South Australia’’ and says it ‘will significantly grow the employment market for law graduates’’.

‘In South Australia alone there are currently in excess of 2000 law graduates who have no immediate employment prospects,’’ Adlaw says.

‘Hundreds more law students graduate from the three South Australian law schools every year, adding to the growing pool of disenfranchised graduate lawyers.

‘The consequence of the situation is that there is a significant waste of investment (time, money and resources) by the student and the government.

‘Highly educated people become disillusioned and demotivated at a high personal cost and cost to the community.” Adlaw said those leaving its program would have earned their practising certificate and become more marketable to other employers.

It expects to take in 10-15 graduates in July with another intake in September. University of Adelaide Dean of Law Professor John Williams said he had some concerns with the Adlawgroup model.

‘The first is the overarching concern that the public is receiving legal services that are of the highest quality and that they can act upon with confidence,’’ Prof Williams said.

‘The second is the quality of the supervision and mentoring that the new graduate is receiving. The two issues are not unrelated.

‘In terms of the business model, it is true that various new arrangements are now coming into existence. However, I would be concerned that new graduates are not being exploited and have the opportunity to develop their skill in an environment that is supportive and adheres to the standards expected of the profession.’’ Adelaide University Law Students Society president Megan Lowe said she also had concerns.

‘Although the AULSS welcomes consideration of innovative ways to address the oversupply of law graduates, we remain wary of the increasing risk of exploitation that this volatile job market creates. This wariness extends to business models such as that of Adlawgroup.’’

Adlawgroup director Cindy Hynes said it was anticipated participants in the two year program would earn a ‘reasonable wage commensurate with industry standards’’.’Adlawgroup is about opportunity; creating it and seizing it by enhancing a post graduate experience for its team and delivering high quality, good value services to its clients,’’ adding lawyers would be supervised by dedicated, experienced practitioners.