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.
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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Anonymous | 30-Jun-2010 9:07 am
Like another writer- I worked with Halliwells a number of times and found them professional and very competent.
Something is obviously wrong, but that should not take away from the excellent work done by all those I worked with.
We live in tough times. I am trying to turn a business round and sadly there will always be greedy shareholders and partners. It is they who do the damage- not the people most of us meet day to day doing a good job.
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Anonymous | 30-Jun-2010 11:15 am
As the parent of one of the future Halliwells trainees I must express my total disgust at the comments made by anonymous at 6:53pm on 26 June. Training contracts are given to those who go through a competitive, interview process and are deemed to have the appropriate skill set. They are not given based on any other criteria. Therefore to have these contracts taken away in effect "overnight" is totally devastating and however bitter and twisted you are how can you feel pleasure in other people's pain? Those graduating this year and about to embark on their LPC have now to either find a new training contract (nigh on impossible), fund it themselves or redirect their career pathway. Yes, they were lucky enough to secure a training contract but why blame them for that? They are now back at square one and I genuinely feel for them. I also feel for you because you clearly hold some type of immature grudge and you need to grow up.
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Anonymous | 30-Jun-2010 3:02 pm
I have just spent a year with Halliwells future trainees at the College of Law and found them to be genuine, friendly and hard working people.
None of them deserve this news and it could have easily happened to me and many others who applied for Halliwells training contracts.
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City Gent | 30-Jun-2010 5:12 pm
I also feel sorry for the Halliwells trainees, but in the long term (assuming they manage to get training contracts elsewhere) they should see it as a blessing in disguise.
I have always - without exception - found Halliwells to be dreadful to deal with. They were inevitably aggressive and hostile, even when our respective clients had a common interest.
They were like a reincarnation of the late unlamented Dibb Lupton ("Yobb & Co") and it surprises me not at all that the almost universal reaction upon hearing of their demise has been to open the champagne.
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Anonymous | 30-Jun-2010 8:55 pm
Well the Country has too many office workers.
The silver lining will hopefully be that young people realise that they should get jobs that actually require genuine work (i.e. engineers, nurses, tradesmen etc)
The economy needs to be rebalanced and young people need to undertake roles that actually have a genuine output.
That's where the demand for labour lies.
We can't have everyone sitting in offices
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Anonymous | 1-Jul-2010 10:10 am
I worked for this firm for a number of years. It was full of arrogant, conceited and avaricious people who viewed others with disdain.
I saw nepotism, racism, sexism, bullying and lying. A lovely bunch of completely deluded people which made me consider quitting law. For future trainees this may be a blessing in disguise.
I feel for the support staff only and wish them luck.
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Louise Fielding | 1-Jul-2010 2:48 pm
I knew someone who accepted a training contract with Halliwells over another (in my opinion) much better firm, three years go before the cracks began to show.
I didn't understand her decision but she was happy with it. I can't imagine how she must feel now, after years of expecting to start a career that she's worked so hard for, to find herself back at square one.
I can't understand the comments 'anonymous' has made above about this situation. My only assumption is that he was not good enough to himself secure a training contract, and by the level of maturity he exhibits, probably never will.
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Anonymous | 2-Jul-2010 6:33 am
legal profession is over-subcribed anyway. It's hard to have sympathy for these people. Surely they realised there was no guarantee of a permanent position anyway?
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Anonymous | 6-Jul-2010 1:41 am
Passing comments and wishing the worst on Trainees is completely outragious. They have nothing to do with this mess. And as for Anonymous - 30/6/10 at 8.55 - I'm wondering why such an idiot is even bothering to read (or actually can read to be exact) this article. Perhaps someone read it to them before they gave their "Too many office workers" speech (memorable (for all the wrong reasons). What an idiot.
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Anonymous | 6-Jul-2010 4:53 pm
I was the anonymous person who made the "too many office workers" speech and yes I am a qualified solicitor still employed.
I you wish to delude yourselves that the legal profession is a good industry to be in then so be it.
Instead it would be better to wake up and smell the coffee. A good starting point would be Richard Susskinds book titled "the end of the lawyers."
I suppose he doesn't know what he's talking about either.
Jobs in the legal profession are already being commoditised and outsourced. This will only gather pace.
The legal profession is not a growth industry and does not offer opportunity for future LPC batches churned out of the College of Law factory.
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