Most law firms which are comprised of multiple person are setup as a hierarchy with Partners at the very top and varying degrees of Associate Attorneys below them. Partners are generally the owners of the company and Associates are employees. The Associates tend to be given the ability to work their way up the ladder to become Partners and share in the gains of the firm rather than just receiving wages.
It is important to really have a written agreement or contract between the Associates and the Firm that spells out everyone's duties and obligations in addition to the conditions under which they may advance. The following is just a draft contract between an Associate and a law firm which can be customized to generally meet the requirements of a law firm hiring an Associate Attorney.
This AGREEMENT made with this 21st day of March, 2011, between the Law Offices of at Smith, herein known as the "Firm" and Joe Blow, hereinafter known as the "Attorney."
Recitals
The Firm is just a Sole Proprietorship, operating as a company rendering legal services. If, during the word with this contract, the Firm changes to another type of business organization, this contract will continue being binding on the Firm, under it's new formation, and on the Attorney.
The Attorney is licensed to apply law in the State of Texas.
The Firm and the Attorney desire to really have the attorney practice law as an employee of the Firm.
It is agreed by and between the parties the following:
Section 1. Employment and Duties.
Employment. The Firm employs the Attorney and the Attorney accepts employment as an attorney in respect with the terms with this Agreement.
Full Time. The Attorney shall devote full working time and attention on the practice of what the law states for the Firm and the Attorney shan't, with no written consent of the Firm, directly or indirectly rendered services of a specialist nature to or for any person or firm except as an employee of the Firm.
Duties and Assignments. The Firm shall determine the duties to be performed by the Attorney and the means and the manner through which those duties will be performed. The Firm shall determine the assignment of the clients to the Attorney and the Attorney shall perform services for such clients assigned. The Firm determine the rates at that the Attorney's work will be billed.
Section 2. Compensation
Salary. For many services rendered by the Attorney under this Agreement, the Firm shall pay the Attorney and annual salary of $58,000, payable weekly or as may otherwise be mutually agreed. The salary might be changed by mutual agreement of the parties at any time.
Bonus. In the addition to the salary specified in 2.1., the Attorney may receive a bonus. The bonus, if any, will be such amounts since the Firm may determine in its absolute discretion.
Additional Compensation. In addition to the salary and bonus specified in items 2.1 and 2.2, the Attorney will be eligible to receive a share of the Firm's portion of Personal Injury cases lawyer. The Attorney will receive 10% of the Firm's payment from a Personal Injury case, once the Attorney has performed as the principal attorney on that case. Additionally, the Attorney will receive 10% of the Firm's payment from a Personal Injury case, once the Attorney personally brought the case to the Firm.
Section 3. Partnership. It is the policy of the Firm to employ as attorneys persons who will be given the ability to become partners in the Firm. The Firm following a certain amount of years could make the determination as to whether the Attorney will be admitted to partnership. The Firm expects to create this determination with respect to this Attorney, no sooner than July 1, 2005, and no later than July 1, 2007.
Section 4. Facilities.
Office. The Firm shall furnish the Attorney with office space, staff assistance, and such other facilities and services as are reasonably required to the performance of the Attorney's duties.
Liability Insurance. The Firm shall maintain professional liability insurance covering the acts and omissions of the Attorney in performance of the Attorney's professional duties.
Travel. The Attorney might be required to visit on business for the Firm, and will be reimbursed for many reasonable and necessary expenses incurred, provided, however, that the detailed account of such expense is provided to the Firm.
Professional Societies. The Firm shall pay the Attorney's dues for memberships in The State Bar of Texas and the American Bar Association.
Education. The Firm shall pay the reasonable number of expenses incurred by the Attorney to maintain or enhance the Attorney's professional skills. The Attorney agrees to submit to the Firm such documentation as might be required to substantiate such expenses
Section 5. Additional Benefits.
Medical Insurance. The Firm agrees to offer medical coverage for the Attorney, the Attorney's spouse and dependents under an organization accident and medical insurance policy, the terms and advantages of which will be determined by the Firm. The Attorney is currently covered under her spouse's policy and doesn't require such coverage currently. That Attorney will notify the Firm at such time that she needs this benefit.
Vacation. The Attorney will be eligible for three weeks vacation time each year however, the Attorney's vacation will be scheduled at such time as will least hinder the company of the Firm. The Attorney is further eligible for time off on all holidays normally celebrated in respect with the Firms stated policy.
Life Insurance. The Firm may provide group life insurance coverage, in amounts which will be determined by the Firm.
Retirement Plan. The Attorney shall be involved in any Firm qualified retirement plan according to the terms of said plan as amended from time to time.
Disability. In the case the Attorney is unable to perform his / her regular duties as a result of personal disability the Firm can pay the Attorney's salary during such disability for a total of ninety (90) days in just about any 24 month period.
Section 6. Operations.
Records and Files. All records, documents, and files concerning clients of the Firm shall belong to and remain the property of the Firm. On termination of employment, the Attorney shan't be entitled to help keep or reproduce the Firms' records, documents or files relation to any client unless the client shall specifically request that its files be transmitted to the Attorney.
Fees. All fees and compensation received or realized as a result of the rendition of professional legal services by the Attorney shall belong to and be paid to the Firm. Any fee or honoraria received by the Attorney for professional services and other professional activities performed by the Attorney shall belong to the Firm.
Section 7. Term.
One Year, Automatic Extension. The term with this Agreement shall begin on the date hereof and continue for an amount of twelve months and will be automatically extended from year to year unless terminated in respect with this specific section.
Events of Termination. This Agreement will be terminated upon the happening of the following events:
The death of the Attorney.
The determination of the Firm that the Attorney has become disabled.
Dismissal for reason for the Attorney as hereinafter provided.
Occurrence of the effective date of termination, notice of which has been given in by either party to another, so long as there are at least sixty (60) days between giving of the notice and the effective date of termination.
The mutual written agreement of the Attorney and the Firm to termination.
Termination on Disability. The Firm may determine that the Attorney has become disabled for purposes of the Agreement in the event that the Attorney shall fail, due to illness or incapacity, to render for ninety (90) days or maybe more in just about any two-year period, services of the smoothness contemplated by the Agreement, and thereunder will be deemed to have been terminated at the time of the conclusion of the calendar month where such determination was made.
Causes for Dismissal. The Firm may dismiss the Attorney for cause in the event it determines there's been continued neglect by the Attorney if his / her duties, or willful misconduct on the the main Attorney, including buy not limited to a finding of probable cause by the Bar for investigation an issue filed having its discipline system or the filing of criminal charges contrary to the Attorney, which would make retention of the Attorney by the Firm prejudicial to the Firm's best interest.
