The Magic Circle™ is made up of leading law firms in the UK that are known for selecting the best finance and corporate lawyers and charging the highest fees per lawyer. A fact that while reputation, client lists and the perception of future colleagues can be key criteria when it comes to choosing the law firm at the beginning of a legal career, the lack of transparency regarding compensation makes it difficult to have a clear idea of the competitiveness of these firms when it comes to compensation alone. Thanks to hundreds of employees using our service to compare their salary, we compared the incomes of leading law firms in the UK. One of our key findings is that some law firms, such as Latham & Watkins, the world`s best-selling law firm, are making a clear decision not to pay bonuses to their junior lawyers, but to pay them with high fixed salaries, and that the partner market is highly inefficient and has large differences in salary from firm to firm. The UK has a vibrant legal community with over 10,000 law firms and nearly 150,000 practising lawyers. Although law is one of the highest paid career paths in the world, not all lawyers are well paid, as our summary of UK lawyers` salaries shows. The interim locum lawyer platform regularly receives requests from small businesses that need the help of a lawyer for a particular project, usually related to the need for a lawyer to review contracts or handle a case for them in court. If these particular businesses go through a law firm, the hourly rate they will pay would probably be about the same rate we charged by our lawyer in Chester, which is at least £250 an hour. The amount you earn as a UK lawyer depends as much on your location as it does on your area of practice and the type of firm you work for.
Several companies pay their employees and partners significantly higher prices than the competition, attracting top talent and some of the most prestigious jobs in the UK job market. After many years, lawyers may have the opportunity to become partners in the firm they worked for, which pays much more because they take a share of the profits. Companies in London often pay interns beyond the recommended minimum. For example, the Magic Circle – consisting of Allen & Overy, Clifford Chance, Freshfield Bruckhaus Deringer, Linklaters and Slaughter and May – London`s five most prestigious law firms currently offer salaries for first-year apprentices in the range of £45,000 to £48,000. Once interns reach their salary in the second year, the salary increases from £51,000 to £52,500. Commercial and corporate lawyers earn the most of all the different types of lawyers because they work closely with banks and other financial institutions and are involved in high-value transactions. By contrast, the average salary for London defence lawyers is £52,500. That`s just below London`s average total salary, which is £53,700 for all positions. The decision to work for a law firm rather than in-house counsel at a bank may have its drawbacks in terms of total income over the course of a career, but being paid based on billed hours and at a certain level of seniority is a pragmatic practice that saves lawyers from the intense stress and paranoia endured by bankers. Obsessed with the opacity and volatility of bonus amounts. However, working as an external consultant for banks is very demanding in terms of hours and workload, often rewinding projects overnight or on very short notice, depending on the bankers` requirements, prompting many lawyers to pursue a career in the banking industry and focus on unpredictable but overall higher bonuses.
All of the aforementioned areas of law have subgenres in which lawyers are trained and can offer their services to potential clients. But which lawyers make the most money in the end? The most profitable area in the field of law is corporate law or financial law, earning over £100,000 a year. The second largest proportional increase in partner salaries was achieved by Taylor Wessing, who increased PEP by 27% to £870,000 this year. This increase reflects a 25% increase in UK sales to £219.3 million and a 32% increase in profit to £93 million. The UK has a thriving legal services sector with thousands of practising lawyers and an annual turnover of nearly £37 billion. This huge sum is generated by royalty recipients in various fields, lawyers who assist their clients in litigation, and support staff who provide expertise and administration. With the hit TV show «Suits» showcasing lawyers as the epitome of power and wealth, a larger than usual group of young graduates could explore law as a career.