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Halliwells trainees face uncertain future as firm files to go into administration

25 June 2010 | By Husnara Begum

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The future of dozens of Halliwells’ trainees is hanging in the balance after the Manchester-based firm files its intention to appoint an administrator.

The legal rights of Halliwells’ current cohort of trainees remain unclear because the law surrounding employees on fixed-term employment contracts, as is the case with trainees, in the context of pre-packed administrations it yet to be tested. One employment law specialist is therefore advising any trainees in departments that may be acquired by third parties to express their desire to move over with their colleagues.

As reported earlier today Liverpool-based Hill Dickinson is interested in acquiring Halliwellls’ Manchester corporate practice, as this would give it a leg up in the North-West city after Darryl Cooke, who the firm hired from DLA Piper in 2007 to build the Manchester corporate practice, left earlier this year (25 June 2010).

Barlow Lyde & Gilbert is believed to be interested in acquiring Halliwells’ insurance practice, which includes major clients such as AIG and AXA.

Halliwells currently has a total of 58 trainees spread across Sheffield (8); London (9); Liverpool (10) and Manchester (31).

Should Halliwells eventually go into liquidation prospects for the firm’s future trainees would be even more precarious with those individuals having very little chance of winning any compensation.

Seventeen trainees are due to join Halliwells in August 2010 with a further seventeen expected in both January 2011 and June 2011.

The Solicitors Regulation Authority, which last year refused to intervene when Shoosmiths withdrew training contracts from some of its future trainees (8 April 2009), said in a statement: “The SRA’s position is that we’re aware of and are closely monitoring the situation.”

Elsewhere, Halliwells is going ahead with its summer vacation schemes but it is believed to have told students on the scheme not to apply for training contracts with the firm until the situation becomes clearer.

Halliwells’ graduate recruitment team declined to comment.

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Readers' comments (32)

  • Anonymous | 25-Jun-2010 6:01 pm

    Erm, who's this mysterious 'employment law specialist'?

    A story couched in extremely speculative terms. Perhaps The Lawyer would have been better off waiting until a formal announcement by one or more of the parties, rather than stirring things up because nobody is commenting.

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  • Very wrong | 25-Jun-2010 11:42 pm

    Reckless, greedy and stupid people cost decent hardworking people their jobs- well done ex managing partner of the year and your equally inept cronies.

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  • Anonymous | 26-Jun-2010 6:42 am

    A pre-pack implies a sale of the business, which if it were to go ahead would make any speculation on the outcome of a liquidation irrelevant.

    In any event the article is wrong. The administrators have not been 'called in' as hysterically alleged; a notice of intention to appoint has been filed - not quite the same thing.

    What would be more interesting would be some comment on the firm's attempts to stem speculation earlier this year about their financial status through injunctive relief. Anyone able to add to this?

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  • Anonymous | 26-Jun-2010 8:40 am

    Yes, cos that's how journalism works. Don't run a story unless you get an official statement!

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  • Anonymous | 26-Jun-2010 8:53 pm

    Serves those smug current and future Halliwells trainees right, good luck in the dole queue!

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  • IHateBPP | 27-Jun-2010 5:39 pm

    "in the context of pre-packed administrations it yet to be tested"

    I assume that "it" should have said "is" or "has". The Lawyer should think twice before preaching about the importance of proof reading.

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  • Anonymous | 27-Jun-2010 5:41 pm

    To Anonymous @6.01pm.

    You are clearly not a trainee starting your career in the middle of a recession, realising that between accepting and starting your training contract your firm has had a string of terrible news and is now possibly going into liquidation.

    Such people are, sadly, the victim's of Halliwell's terrible management team. They have every right to hear discussion of the possible implications for them and to receive any advice, speculative or otherwise. They do not need to sit on their hands until the management work out the best way of telling them they are screwed.

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  • Anonymous | 28-Jun-2010 1:30 pm

    Anonymous | 26-Jun-2010 8:53 pm - bitter twisted loser - how can you be so nasty when the livelihoods of a lot of people stand to be in the balance.

    Best of luck trying to convince people you deserve respect.

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  • G | 29-Jun-2010 4:56 pm

    My heartfelt apologies to everyone affected by this. Speaking as somone who has used this firm many times (not because I'm a serial offender or anything), I have always found Halliwells full of friendly, professionaly people who have been a joy to work with.
    I hope for the best result in this. No matter who we are or what role we do, the fear of losing the security of employment is a terrible thing. Good luck. x

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  • Anonymous | 29-Jun-2010 10:56 pm

    In a time when Training Contracts are so difficult to come by anyway, it must be totally demoralising to have a hard come by contract removed - best of luck to the trainees, here's hoping that the SRA will bother to intervene this time should contract severances / withdrawls occur - otherwise what is the £80.00 SRA student fee actually for?

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