A legal counsel is a lawyer who is employed by a corporate client. They do not work for a private law firm but within the business itself.
Legal counsels are, first and foremost, qualified lawyers. Legal counsels are different from regular private practice lawyers. This article explains how legal counsels bring value and deliver legal services to their clients.
From contract negotiations to compliance with regulations, businesses often require legal advice to navigate these challenges. This is where the role of a Legal Counsel comes into play. But who exactly is a Legal Counsel, and what do they do? Let’s take a look into this crucial role.
A Legal Counsel, also known as an in-house lawyer, is a qualified legal practitioner employed by an organisation. They must have completed their practical legal training and be admitted to legal practice in the jurisdiction in which they work. Next, they need to hold a current practising certificate that permits them to practise law.
An in-house legal counsel could be any legally qualified person. What is important is who they are employed by, for instance, a company rather than a law firm.
The client of a Legal Counsel is the organisation they work for. They are deeply involved in the business, understanding its operations, goals, and challenges. This intimate knowledge allows them to provide tailored legal advice that aligns with the company’s strategic objectives.
Unlike private practice lawyers, a legal counsel has one client. That one client is comprised of a single corporate client, but it can also include that client’s parent company, sister companies and subsidiaries.
Because Legal Counsels are expected to support their employer to deliver commercial outcomes, as well as reduce legal risk, Legal Counsels understand how important it is to get to know their client’s business.
This is a learned skill; it’s about asking plenty of questions, taking interest in all aspects of the business and taking note of issues that (on their face) might not immediately appear to present a legal issue or something that requires legal input.
A legal professional typically deals with a broad range of legal areas, reflecting the diverse legal needs of a business. These can include contract law, employment law, intellectual property law, corporate governance, and compliance with various regulations.
Their role may involve drafting and reviewing agreements, advising on legal risks, handling disputes, and ensuring the company’s operations comply with relevant laws and regulations.
And while not all legal counsels work as part of a legal team within a legal department, all work as part of the broader business team.
When it comes to the role of in-house legal, providing advice is as broad as the employer’s business. The lawyer may need to advise on any issue the company may need, including:
Often, a legal counsel job description will broadly refer to ‘legal advice’, because it may not be possible to be specific about what kind of advice is needed. But it’s also important for in house counsel to understand their limits. If the advice is too far outside of their area of expertise, they may need to get external legal advice.
Some legal counsels will be heaving involved in providing legal representation in court proceedings and managing potential litigation. However, it is more common for in-house legal professionals to be the ‘middle-man’ between external lawyers and the business.
Managing disputes may involve:
The ability to draft legal documents is an essential part of any lawyer’s role. Whether it is email correspondence or complicated agreements, legal counsel work often involves a lot of writing.
Drafting contracts is a skill. And for many in-house lawyers, drafting contracts is a daily task and could include:
Beyond their legal expertise, an in-house lawyer must possess certain soft skills. Arguably the most important soft skill is interpersonal skills. They need to be able to build relationships and communicate effectively because they work closely with various people in a business.
And lawyers must be able to communicate complex legal concepts in simple terms that non-lawyers in the business can understand. They often need to train staff on legal matters, such as contract basics or compliance requirements.
Moreover, in-house lawyers must be a strategic thinker. They must be able to anticipate potential legal issues and advise on strategies to mitigate these risks. They also need to be adept at managing relationships with various stakeholders, including management, staff, external legal teams, and regulators.
A lawyer brings immense value to a business. Their deep understanding of the business and its legal environment allows them to provide proactive and strategic legal guidance. They can help prevent legal problems before they arise, saving the business from costly disputes and regulatory penalties.
Moreover, by handling many of the company’s legal needs in-house, a Legal Counsel can reduce the need for expensive external legal services. They can also ensure that the company’s legal affairs are handled consistently and in line with the company’s overall strategy.
An in-house lawyer serve as the legal compass for a business irrespective of whether the business is small or one of the larger companies.
Whether it’s a multinational corporation or a small startup, any business can benefit from the expertise and guidance of a in-house lawyer.
Unlike private practice lawyers, a legal counsel has one client. That one client is comprised of a single corporate client, but it can also include that client’s parent company, sister companies and subsidiaries.
Because Legal Counsels are expected to support their client to deliver commercial outcomes, as well as reduce legal risk, Legal Counsels understand how important it is to get to know their client’s business.
This is a learned skill. It requires asking plenty of questions, taking an interest in all aspects of the business and taking note of issues that (on their face) might not immediately appear to present a legal issue or something that requires legal input.
Rather than being pigeonholed into one area of law, in-house lawyers are (for the most part) expected to learn and navigate a broad range of areas of law.
If the client has a legal issue crop up in relation to an area of law that is not within the Legal Counsel’s usual day-to-day remit, the in-house lawyer is expected to:
An in-house lawyer is expected to integrate fully into their client’s business. This means that they must be professional (as all lawyers should be), but also personable and able to adapt to working with non-lawyers and a workplace culture that is not targeted at legal professionals.
Being able to explain complex legal concepts in simple terms is critical. If a Legal Counsel’s advice is (legally and technically) accurate, but the client gets lost in legalese or doesn’t understand how to implement the advice, the Legal Counsel has not done their job properly.
An extension of being able to explain complex legal concepts in simple terms is the ability to train staff. Whether it is about agreements, intellectual property or the Australian Consumer Law, Legal Counsel must be able to impart their knowledge to relevant staff within the client’s business.
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