Firms told: innovate for waivers

Law firms that seek innovative ways to compensate trainees will receive a 'sympathetic hearing' when they apply for a waiver of the minimum salary, the chairman of the Law Society's standards board announced last week.

Andrew Holroyd told the Society's council of one firm which was granted a waiver because it had agreed to pay off the trainee's debts, saving the trainee from interest payments.

The council agreed to lift the level of the minimum salary to 15,300 for central London (up from 14,600) and 13,600 elsewhere (up from 13,000).

The recommended minimums have risen to 16,200 and 14,450 respectively (up from 15,600 and 14,000).

It also voted that no waivers should be granted for salaries below 11,000 (up from 10,000).

Meanwhile, after several years of debate, the council finally approved the introduction of compensation for council members, to be set at 3,000, with additional payments of 7,000 for the treasurer, 6,000 for subsidiary board chairmen and 3,000 for main board members who are not office holders or board chairmen.

The total cost will be 319,000.

The annual general meeting in July will be asked to approve these payments and change the by-laws, as well as changing them to allow payments to be made to individuals rather than firms or employers.

The 2001 annual general meeting approved compensation payments to council members in principle.

In other decisions, the council approved a nil contribution to the Solicitors Indemnity Fund this year after the shortfall was cleared two years earlier than planned (see [2003] Gazette, 15 May, 1).

Fund chairman Paul Marsh said: 'It's unlikely we'll ever have to make another call on firms [for money], but I cannot say "never".'

It confirmed the changing of the indemnity renewal date from 1 September to 1 October to move the renewal period away from the summer holidays, despite some calls for rolling renewal dates.

Chief executive Janet Paraskeva also announced to council that she would be meeting with the Queen's private secretary to discuss the Queen's possible involvement in the 2005 Commonwealth Law Association conference, which the Law Society and Bar Council agreed last month to host.

Neil Rose