Practice note

What to do when the law firm you work for is closing down

This practice note provides guidance and support to employees of law firms that are closing down. It covers different closure scenarios, employment issues and dealing with clients.

03 Sep 2026

15 minutes read

Anyone who works in any type of law firm that is closing down may find this practice note helpful.

Managers of law firms who are considering closing down their practice can benefit from being aware of the guidance in this practice note.

They should consider signposting their employees towards it as part of their closure arrangements.

Throughout this practice note, the terms ‘close’, ‘closed’ or ‘closing down’ refer to the situation where a firm ceases to operate.

The issues considered and the guidance offered may not apply in all circumstances, given the unique situations causing practices to close.

Employees will need to consider how the issues relate to their position specifically.

This practice note is the Law Society's view of good practice in this area and is not legal advice. For more information, see the legal status.

Introduction

Who should read this practice note?

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Practice notes represent the Law Society’s view of good practice in a particular area. They are not intended to be the only standard of good practice that solicitors can follow. You are not required to follow them but doing so will make it easier to account to oversight bodies for your actions.

Practice notes are not legal advice, and do not necessarily provide a defence to complaints of misconduct or poor service. While we have taken care to ensure that they are accurate, up to date and useful, we will not accept any legal liability in relation to them.

For queries or comments on this practice note, contact our Practice Advice Service.

SRA Principles

There are seven mandatory principles in the SRA Standards and Regulations which apply to all aspects of practice.

The principles apply to all authorised individuals (solicitors, registered European lawyers, registered foreign lawyers and registered Swiss lawyers), authorised firms and their managers and employees, and to the delivery of regulated services within licensed bodies.

Must – a requirement in legislation or a requirement of a principle, rule, regulation or other mandatory provision in the SRA Standards and Regulations. You must comply, unless there are specific exemptions or defences provided for in relevant legislation or regulations.

Should – outside of a regulatory context, good practice, in our view, for most situations. In the case of the SRA Standards and Regulations, a non-mandatory provision, such as may be set out in notes or guidance.

These may not be the only means of complying with legislative or regulatory requirements and there may be situations where the suggested route is not the best route to meet the needs of a particular client. However, if you do not follow the suggested route, you should be able to justify to oversight bodies why your alternative approach is appropriate, either for your practice, or in the particular retainer.

May – an option for meeting your obligations or running your practice. Other options may be available and which option you choose is determined by the nature of the individual practice, client or retainer. You may be required to justify why this was an appropriate option to oversight bodies.