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Practice Management

This publication provides all the essential information and resources needed to efficiently manage a law firm.

2 Matter Plans

Overview

The commentary covers core aspects of legal practice, including ethics, the lawyer-client relationship, matter management, risk management, financial management, client communication, costs and billing. It also addresses employment, including recruitment, training, and staff retention.

The comprehensive Legal Practice Health Check Self-Diagnostic Tool enables firms to assess their current performance and set informed goals for future development.

The 101 Staff Handbook contains a complete set of essential policies and procedures for law firms. Practice managers can adopt these directly or use them as a framework to create tailored, firm-specific policies.

Precedents in this publication include:

  • Library of position descriptions;
  • Library of policies:
    • AI, computer, email, and internet usage;
    • Corporate social responsibility;
    • Flexible work;
    • Risk management;
    • Working from home;
    • Workplace discrimination, bullying, and harassment;
  • Business plan;
  • Asset register;
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2 Matter Plans Included

  • Folder icon Form style templates
    • Item icon District Court Litigation style template
    • Item icon High Court Litigation style template
  • Folder icon BETA - Form style templates
    • Item icon District Court Litigation style template
    • Item icon Family Court style template
    • Item icon High Court Litigation style template
  • Item icon ALERT - Amendments to AML/CFT regulations apply from 1 June 2025, including the need to risk-rate clients. See Anti-Money Laundering and Countering Financing of Terrorism under The Lawyer and client relationship.
    Amendments to AML/CFT regulations apply from 1 June 2025, including the need to risk-rate clients. See Anti-Money Laundering and Countering Financing of Terrorism under The Lawyer and client relationship.

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  • Item icon Full Commentary - Practice Management
  • Folder icon Reference materials
    • Item icon AI Prompts
    • Item icon Electronic Signing and Witnessing
    • Item icon 101 Staff Handbook
    • Item icon Further information
  • Item icon Overview
    This publication covers many areas of the management of legal practice, providing guidance and tips for running a successful law firm, policies and procedures that can be used in the firm, and precedents to support the day-to-day operation of the business. This guide is aimed at law firms across ...

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  • Folder icon A. The practice
    • Item icon File cover sheet - Practice Management
    • Item icon The practice
      The psychology and the character of all organisations flows from the top, from the principals, and no way of running the firm will work properly unless the principal is committed. Similarly, the commitment to learning and expanding the knowledge base of the practice comes down to the interest and ...

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    • Item icon The role of the principals
      Principals of small law firms wear many hats. They may be a sole practitioner, in which case the hats are all piled on top of each other, or they may be partners in a partnership or co-directors in an incorporated legal practice, in which case the hats can be shared around a bit, however, there are ...

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    • Item icon Business management
      Policies and procedures The foundation for management of the business of a legal practice is to have policies and procedures which record and effectively automate the firm’s operations.

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    • Item icon Team management
      The importance of managerial controls cannot be overstated. They provide the basis for a profitable and low stress practice. Profit is not necessarily related to size, location, or how busy a firm is. Research shows that busy firms are often poor profit performers due to poor managerial practices. ...

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    • Item icon Data management
      Privacy Act requirements The Privacy Act 2020 provides for collecting, holding, and using personal information.

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    • Item icon Breach Management - Office of the Privacy Commissioner
    • Item icon Enclosure - Notification to OPC advising of Privacy Act notifiable breach if online notification is not possible
    • Item icon Letter to client advising of Privacy Act data breach notification
    • Item icon Matter management
      File notes File notes are a critical risk management tool. Without detailed and accurate file notes the file is incomplete and the practice is exposed. They record what happens on a matter, what instructions are received, what advice is given, and what actions are taken. They represent critical ...

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    • Item icon Document management
      Firm documents Documents including letters, precedents, and pleadings need to be standardised for consistency and to save the effort involved in constant re-invention.

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    • Item icon Client details and verifying identity
    • Item icon Retainer instructions - General
    • Item icon Conflict of interest check
    • Item icon Initial letter to client with Client Care and Terms of Engagement
    • Item icon Conveyancer Client Care and Terms of Engagement
    • Item icon Client Care and Terms of Engagement
    • Item icon Authority to previous lawyer for documents and file
    • Item icon Safe custody receipt
    • Item icon File review form
    • Item icon File closing checklist
    • Folder icon Deeds, agreements, execution clauses and statutory declaration
      • Item icon Deeds and Agreements
      • Folder icon Deeds
        • Item icon Deed for general use
        • Item icon Deed of guarantee
        • Item icon Deed of release
        • Item icon Confidentiality deed
        • Item icon General deed of indemnity
        • Item icon Deed of assignment of agreement
        • Item icon Deed of gift
      • Folder icon Agreements
        • Item icon Agreement for general use
        • Item icon Heads of agreement
        • Item icon Non-disclosure agreement - Formal
        • Item icon Non-disclosure agreement - Informal
      • Folder icon Library of clauses for deeds and agreements
        • Item icon Amendment clause
        • Item icon Confidentiality clause for defined information - All parties
        • Item icon Confidentiality clause for defined information - One party
        • Item icon Confidentiality clause for terms of agreement - All parties
        • Item icon Confidentiality clause for terms of agreement - One party
        • Item icon Costs clause
        • Item icon Counterparts clause
        • Item icon Dispute resolution clause
        • Item icon Events beyond control clause
        • Item icon Governing law and jurisdiction clause
        • Item icon Interpretation clause
        • Item icon No assignment clause
        • Item icon Notices clause
        • Item icon Severance clause
        • Item icon Waiver clause
        • Item icon Whole agreement clause
      • Folder icon Execution clauses
        • Item icon Execution clauses - Agreements
        • Item icon Execution clauses - Deeds
      • Folder icon Statutory declaration
        • Item icon Statutory declaration
        • Item icon Standard annexure note for documents
  • Folder icon B. The employer and employee relationship
    • Item icon Employing good people and treating them well
      Research has concluded that the cost of being a bad place to work outweighs the cost of paying above average wages, providing excellent conditions, including training opportunities, and flexible work practices. Unhappy employees have high levels of absenteeism, change jobs frequently, and are less ...

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    • Item icon Letter to new employee - Solicitor
    • Item icon Letter to new employee enclosing form to indicate intention to join union
    • Item icon Do you intend to join a union? – Employment New Zealand
    • Item icon Standard employment agreement
    • Item icon Recruitment
      Staff costs are the biggest overhead for any law firm, so recruitment must be given due priority and adequate resources. It is false economy to save money on recruitment if that means costing the business time and money later by reason of internal disharmony, poorly performing team members, poor ...

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    • Item icon Application for employment
    • Item icon Interview notes
    • Folder icon Library of position descriptions
      • Item icon Blank position description
      • Item icon Accounts clerk
      • Item icon Administration manager
      • Item icon Chief executive officer
      • Item icon Executive assistant
      • Item icon Financial controller
      • Item icon Human resources manager
      • Item icon Law clerk
      • Item icon Legal executive
      • Item icon Legal secretary
      • Item icon Library and information services manager
      • Item icon Marketing manager
      • Item icon Paralegal
      • Item icon Precedents manager
      • Item icon Senior associate
      • Item icon Lawyer
      • Item icon Trainee-junior
      • Item icon Word processing operator
    • Item icon Induction
      The firm will need to have an induction policy and procedure. When a new employee commences, an opportunity arises to cement the relationship and demonstrate they are joining a well-run organisation where they, and all other team members, are highly valued.

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    • Item icon New employee induction letter
    • Item icon New employee information sheet
    • Item icon New employee checklist
    • Item icon Education and training
      Employees need a clear career path, for example, towards partnership, undertaking more responsible work, or to learn new skills by attending training courses. Not everyone needs to be aiming for something completely life-changing provided there is a path to fulfilment and improvement, and ...

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    • Item icon Health and safety at work
      Employers have a duty of care at common law and statutory obligations to their employees. Legal practitioners have additional professional obligations to behave appropriately towards employees. WorkSafe provides substantial assistance, including template documents, to assist employers to comply ...

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    • Item icon Example - Flexible work policy
    • Item icon Example - Working from home policy
    • Item icon Internet usage
      An internet usage policy assists all members of a legal practice to understand and be clear about the firm’s rules and guidelines in relation to the use of equipment, the office network, and the internet. Such a policy protects the firm as well as the employee. As a starting point, employees should ...

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    • Item icon Example - Computer, email, and internet usage policy
    • Folder icon Existing staff forms
      • Item icon Leave request form
      • Item icon Incident report form
      • Item icon Example content - Confirmation of employment
    • Item icon Bullying, discrimination, and harassment
      Bullying Bullying is prohibited behaviour under the Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008 and a health and safety at work issue. Under the rules, bullying is defined as repeated and unreasonable behaviour directed towards a person or people that is likely to ...

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    • Item icon Example - Workplace discrimination bullying and harassment policy
    • Item icon Compliance and reporting obligations of law practices for prohibited behaviour
      Each law practice must appoint a designated lawyer, who is either a partner, director, or sole practitioner, and notify the Law Society Registry of their designation at registry@lawsociety.org.nz. A precedent letter to the Law Society is on the matter plan. In-house lawyers are not required to have ...

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    • Item icon Letter to Law Society advising designated lawyer
    • Item icon Letter to Law Society reporting warning, dismissal or leaving employment due to prohibited behaviour
    • Item icon Designated lawyer report – New Zealand Law Society | Te Kāhui Ture o Aotearoa
    • Item icon Record of written warnings, dismissal or investigation for prohibited behaviour
    • Item icon Letter to Law Society reporting misconduct or unsatisfactory conduct
    • Item icon Confidential report – New Zealand Law Society | Te Kāhui Ture o Aotearoa
    • Item icon Performance reviews
      Review of staff performance is a matter requiring careful attention by the principal or by any appointed manager. Reviews should be regular and scheduled and be conducted with discretion. Employee reviews should be a private discussion between the principal and each team member to hear their view ...

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    • Item icon Performance review form
    • Item icon Staff leaving
      For some people, especially young lawyers, their career path will probably take them out of the firm. No matter how well employees are treated, no matter how highly they are valued, sometimes they will need or want to move on. Although it can be frustrating as a principal to put enormous resources ...

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    • Folder icon Resignation, issues and termination
      • Item icon Example content - Reference
      • Item icon Recording a meeting with an employee
      • Item icon Individual grievance procedure
  • Folder icon C. The lawyer and client relationship
    • Item icon Basis of the relationship
      The relationship between lawyer and client is multi-layered:

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    • Item icon New client enquiries
      Lawyers receive many enquiries from potential clients, some result in opening a file and proceeding with the matter, and others do not. Just as a record of any initial conversations with clients who proceed to instruct the firm is kept on the client’s file, it is good practice to keep a record of ...

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    • Item icon New client enquiry form
    • Item icon Letter to client when no instructions to act
    • Item icon Anti-money laundering and countering financing of terrorism (AML/CFT)
      Reporting entities under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 have strict obligations. A law firm is a reporting entity if, in the ordinary course of business, it carries out any of the activities of a designated non-financial business or profession as defined ...

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    • Item icon Money laundering and financing of terrorism risk assessment
    • Item icon Suspicious Activity and Transaction Reports – New Zealand Police
    • Item icon Conflicts, confidentiality, and privilege
      Conflicts of interest A lawyer must not act or continue to act if there is a conflict or a risk of a conflict between the interests of the lawyer and the interests of a client for whom the lawyer is acting or proposing to act: Chapter 5 of the Lawyers and Conveyancers Act (Lawyers: Conduct and ...

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    • Item icon Conflict of interest check
    • Folder icon Library of retainer instructions
      • Item icon Retainer instructions - Civil matters
      • Item icon Retainer instructions - Companies - Dispute
      • Item icon Retainer instructions - Companies - Incorporation
      • Item icon Retainer instructions - Criminal
      • Item icon Retainer instructions - Debt collection
      • Item icon Retainer instructions - Dissolution
      • Item icon Retainer instructions - Estate administration
      • Item icon Retainer instructions - General
      • Item icon Retainer instructions - Leases
      • Item icon Retainer instructions - Mortgages
      • Item icon Retainer instructions - Parenting
      • Item icon Retainer instructions - Purchase of business
      • Item icon Retainer instructions - Purchase of real property
      • Item icon Retainer instructions - Relationship property agreements
      • Item icon Retainer instructions - Relationship property division
      • Item icon Retainer instructions - Sale of business
      • Item icon Retainer instructions - Sale of real property
      • Item icon Retainer instructions - Traffic offences
      • Item icon Retainer instructions - Trusts
      • Item icon Retainer instructions - Wills and Powers of Attorney - Individual
      • Item icon Retainer instructions - Wills and Powers of attorney - Spouses
    • Item icon The duty of loyalty and the overriding duty to the court
      The duty of loyalty A further fundamental obligation a practising lawyer must comply with is the duty to act in accordance with all fiduciary duties and duties of care owed to their clients: s 4 of the Lawyers and Conveyancers Act 2006.

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    • Item icon Independent legal advice and the authority to act
      Independent legal advice A lawyer must be independent and free from any compromising influences when advising a client: Chapter 5 of the Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008.

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    • Item icon Liability in negligence, to third parties, and of barristers
      Liability in negligence The lawyer’s tortious liability is based in negligence. Any failure to achieve the standard of a reasonably competent lawyer in the performance of the retainer will expose a lawyer to an action for negligence by the client. Such acts or omissions may also constitute breach ...

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    • Item icon Lawyers and caveats
      It is professional misconduct to lodge a caveat on behalf of a client unless the lawyer is reasonably satisfied that the client has a legitimate interest in the land. Caveats can only be registered in very limited circumstances, as set out in s 138(1) of the Land Transfer Act 2017. A complaint ...

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    • Item icon Lien and the client's right to the lawyer’s file
      Lien A lawyer has a common law possessory lien over a client’s documents until the lawyer’s costs have been paid. This includes documents held on behalf of the client in relation to matters other than the matter in relation to which the costs are owed.

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    • Item icon Proceeds of crime
      The Criminal Proceeds (Recovery) Act 2009 (CPRA) allows police to seize cash and assets that have been obtained directly or indirectly from the proceeds of crime. Any obligations on law firms under the CPRA are additional to any that exist under the Anti-Money Laundering and Countering Financing of ...

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    • Item icon Costs
      The rules concerning fees are set out in Chapter 9 of the Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008.

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    • Item icon Example invoice
    • Item icon Letter to client updating costs estimate
  • Folder icon D. Ethics
    • Item icon Ethics and professional responsibility
      The ethical obligations of lawyers are based on those assumed by all members of a civilised society. They are extended because of the special relationship that the lawyer has with society as a member of the profession, which establishes and administers society’s laws. An obligation to practice ...

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    • Item icon Ethical duties
      The lawyer’s ethical duties can be divided into 3 categories:

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    • Item icon How to identify an ethical issue
      The existence of an ethical issue will often be self-evident. Most lawyers will feel a sense of unease when an ethical issue arises, even if they cannot identify the exact nature of the problem. Experience tells that the best way to identify the exact nature of the problem is to ask clarifying ...

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  • Folder icon E. Policies, management, and planning
    • Item icon Managing firm information
      The flexible nature of LEAP allows firms to open specific matters to administer firm practice management and compliance issues. Managing the actual business of the firm in this way provides for readily accessible information, all in one location, and is restricted to relevant members of the team as ...

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    • Item icon Legal practice health check self-diagnostic tool
      The first step for existing practices and a useful checklist for start-up firms is to assess how the practice is currently performing, what can be improved, and where any potential risks and issues lie. A regular firm health check is a tool that can be used to constantly monitor the firm’s progress ...

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    • Item icon Legal practice health check self-diagnostic tool
    • Item icon Strategy and leadership
      Leadership is the key to success. The strategic framework should not be a hypothetical standard or a management tool. It needs to be driven by the principal and the leadership team to prevent poor staff morale, and negativity that will be detrimental to the firm’s performance and purpose. If the ...

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    • Item icon Example - Mission statement
    • Item icon The business plan including SWOT and an environmental scan
      The business plan It is essential to have a plan. Failing to plan is planning to fail.

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    • Item icon Example - Business plan
    • Item icon Example - Risk management policy
    • Item icon Example - Firm social responsibility policy
    • Item icon Marketing
      Everything the firm does Branding and marketing are part of everything a firm does. It is not a separate function or someone else’s responsibility. A firm has thousands of opportunities to connect with clients each year, in the office, on the phone, through emails, mail, and advertising, and in the ...

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    • Item icon Marketing planner
    • Item icon Letter to client enclosing client satisfaction survey
    • Item icon Client satisfaction survey
  • Folder icon F. Financial management
    • Item icon Fee earner productivity
      Within the legal practice, the fee earners must be assessed for their contribution to profitability. Key performance indicators can be used as benchmarks. These might include file volume, file velocity, the quality of the work, contribution to client relationship management and development, or ...

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    • Item icon Business performance chart
    • Item icon KiwiSaver contributions
      Employees can choose to contribute 3%, 4%, 6%, 8%, or 10% of their gross wage or salary to their KiwiSaver account. Employers are legally required to contribute to the employees’ KiwiSaver at 3% of their gross salary or wage. Employers may contribute more if they wish, and this must be in addition ...

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    • Item icon Asset register
      An asset register for the firm allows for the tracking of fixed assets and provides an estimate of their worth. It assists with taxation, insurance, and potential sale-of-business compliance, and provides an appropriate place to record detailed information, such as serial numbers. An asset register ...

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    • Item icon Asset register
    • Item icon Asset register entry slip
    • Item icon Bookkeeping for beginners
      Warning If the thought that a credit balance at the bank is, in fact, a debit balance in the firm’s accounting ledger is horrifying, then this section can be skipped, and a good, computerised accounting system invested in, a bookkeeper hired, and an accountant visited regularly.

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    • Item icon Accounting software
      It is important that good accounting computer software is purchased and the firm’s financial records are maintained by a competent bookkeeper or accountant. As there are many accounting software options, it might be wise to consult with the accountant to ensure they or someone else will be ...

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    • Item icon Petty cash reconciliation
    • Item icon Manual bank reconciliation statement
    • Item icon Budgeting
      It is important to prepare a budget to be able to plan the business and to have something for which to aim.

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    • Item icon Tax
      Background Under tax laws, firms are required to declare all income as defined for tax purposes. Income is defined under the Income Tax Act 2007, and a differentiation is made between different classes of income, for example, taxable income, exempt income, foreign source income, excepted income, ...

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    • Item icon Trust account
      It is critical that a lawyer is familiar with the requirements of maintaining a trust account and adheres to them strictly. If the firm is using LEAP software, then access to trust account and practice management software systems and accounting software is included in the subscription.

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    • Item icon Authority for trust account withdrawal by electronic funds transfer
  • Item icon Comments and suggestions for By Lawyers

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