Ask the experts: how should law firms handle SQE failures?

Launched in 2021, the Solicitors Qualifying Exam (SQE) route is still relatively new on the scene.

The route comprises of two sets of assessments, alongside requirements to obtain a degree or equivalent qualification, two years' qualifying work experience (QWE) and meeting the Solicitors Regulatory Authority (SRA) character and suitability requirements.

The two SQE assessments are the SQE1 and SQE2. SQE1 tests functioning legal knowledge, while SQE2 tests practical legal skills.

In October 2024, the SRA published the SQE1 July 2024 pass rate which, including resits, was 44% – the lowest rate yet recorded.

So, how are employers of future trainees responding to the lower pass rates than the historically higher ones of the Legal Practice Course (LPC)?

It’s unfamiliar territory for law firms to navigate and particularly an issue for firms who have chosen to ‘frontload’ the SQE.

Frontloading exams

Firms may ‘frontload’ the SQE exams – where sponsored candidates must pass all exams before embarking on QWE – so that trainees can focus solely on the business once they arrive.

“Some of these young people will fail their exams either as they walk through a firm’s door – or shortly before”, says Louisa Mendes da Costa, member of the City of London Law Society (CLLS) Training Committee.

“It’s a critical time, because the firms won’t know much about their incoming trainees.”

For most of those candidates, this is the first exam they’ve failed, says Patrick McCann, chair of the CLLS Training Committee. “The only other one tends to be the driving test.”

By extension, it’s quite often a novel situation for the emerging lawyer and firm, he explains.

“So it’s probably out of policy and therefore it merits some time and thought before you agree on your approach, instead of making a hasty decision.”

Communication is key

We recently published guidance for those managing SQE failures.

It sets out a number of considerations for employers deciding on the best course of action when things don’t go as planned.

Knowing how to handle these situations in a compassionate, kind way with a clear communications plan is at the heart of this.

Daniel Peacock is a solicitor and immediate past chair of the Junior Lawyers Division.

“We echo the Law Society’s guidance to employers for candidates that have failed the SQE1 and strongly encourage the evaluation of all the circumstances which have led to the candidate failing before making a decision,” he says.

“Candidates working towards qualification via the SQE route should be able to have confidence that employers will support their progression towards qualification.”

“Each student will have a different story behind their failure,” adds Camilla Brignall, secretary of the CLLS Training Committee.

“As a matter of decency, you need to get to the reason why the students failed. There are so many hardships that don't come out until you sit in front of them. You can’t assume they’re not up to it.”

The committee, members of which contributed to the Law Society guidance, has been conducting its own research and discussions with those close to handling SQE failures.

“One good example we came across was a firm who reached out to candidates in advance of the results with details of a designated person to speak to if things go wrong,” explains Louisa.

“A phone call, when the candidate was ready to speak about it, would be followed by a face-to-face discussion to get to the bottom of why the failure happened. This should be a senior person, who understands the impact of what has happened,” she says.

“The firm would also contact the course provider as part of this process. If that person attended the course and had clearly made a real effort, they took the view that it’s a new exam with a high failure rate. The candidate should be allowed to resit and or appeal if appropriate.”

Patrick says “there can be serious consequences if that conversation is the end of a career which is why it needs to be handled by the right person”.

The long-term rewards of being compassionate

It’s sometimes tempting, during uncertainty, for firms to take a short-term view.

“There could be potential for some firms to use the failure rates as a way to manage numbers,” says Camilla. “But they’ll end up with a less rich cohort of trainees.”

“We’ve also heard of situations where there’s been no negotiation, no real communication at all,” adds Patrick.

“I’d be very surprised if firms who choose to go down this path don’t see a drop in applications, or a reduction in those who stay on once they qualify.”

There are also reputational ramifications.

“It misses the opportunity to become known as a compassionate employer in exchange for loyalty, and bringing on cohorts of emerging lawyers with the right attributes to succeed with clients,” he says.

“The lawyer, on their lowest day, will thank you. Knowing that the firm was in the trenches with them, that they were side-by-side, is going to make them pretty loyal, thankful and resilient.

“You’ll create an empathetic lawyer. Those are the skills you want in your team.”