‘Virtual’ legal practices that allow employees to work from home are looking to mop up redundant City solicitors or those worried about losing jobs.

A number of such practices – which employ freelance lawyers and pool their expertise – said this week that they are recruiting corporate lawyers as City redundancies continue to mount.

Virtual firms say they provide flexibility for employees, and in some cases a bigger cut of hourly fees. They also claim to be able to provide cheaper legal advice to clients – particularly small and medium-sized businesses – by saving on office space, administration and IT.

Janvi Patel, director at Halebury, which employs eight consultants, said ‘high-calibre’ lawyers with financial services expertise are the main targets. Oliver Brice, managing director at Virtual Law, which employs 10, said he is targeting intellectual property, IT, and employment, as well as general corporate and commercial lawyers.

James Knight, managing partner at Keystone Law, which employs 65 consultants, said the firm is undertaking an ‘aggressive’ recruitment drive, and that economic turmoil was directly responsible for two lawyers ‘jumping ship’ to join Keystone.

Halebury’s Patel said: ‘The industry needs to be more competitive. The change in market conditions provides us with an opportunity not just to scoop up high-calibre lawyers, but also to attract clients who are looking for a significant cost reduction.’

Knight said Keystone is recruiting to service ‘a flood of new clients looking for better value than their current law firms provide.’

Virtual Law plans to introduce a ‘virtual office’, where clients can check through a web browser what work has been done on their account, and at what cost.