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Solicitors PI Risk Alert: SRA Publishes New Workplace Environment Guidance

This risk alert delves into what the SRA guidance, “Workplace environment: risks of failing to protect and support colleagues,” means for firms and the suggested actions to mitigate risk.

21/03/2022 · 3 minutes read

Being an effective supervisor under a firm’s and supervisor’s regulatory obligations includes ensuring that fee earners have the necessary capacity and ability to do their work.

On 7 February 2022, the Solicitors Regulation Authority (SRA) published its guidance “Workplace environment: risks of failing to protect and support colleagues”.

The guidance says that: “Proper supervision is more than just checking that staff are progressing client matters. It means making sure that, at the very least, firms have in place arrangements to regularly monitor and assess employees' workloads and capacity as well as their competence to do the work.”

The guidance emphasises that the SRA will take regulatory action against individuals where there have been serious failings, for example, where there is evidence of ineffective systems and controls. This includes the failure to supervise or support staff that leads to serious competence or performance issues, or where wholly unreasonable workloads or targets are imposed.

Additionally, the regulator states that: “Firms should do everything they reasonably can to look after their staff's wellbeing in the workplace; to protect staff from bullying, harassment, discrimination, and victimisation, while supporting their staff so they can work safely and effectively.”

Once again, the regulator will take action, if there are serious failures.

This guidance clearly identifies a revised stance by the regulator, not only in relation to supervision, but more generally concerning workplace culture with potentially significant repercussions for firms and individual supervisors/managers where failures are identified.

To implement this control accordingly, suggested actions are:

Raise awareness: This article and the resources below can be shared with management groups and their teams to ensure they are aware of the regulator’s approach.

Update and/or create new policies: Consider current governance procedures, policies, and strategies, and identify where improvements can be made in relation to the culture of the firm and supervision of the workforce, including consideration of hybrid working, as appropriate. A record of changes, and when they were implemented should be made, in accordance with SRA regulations.

​​Review company culture: A firm can audit whether their current culture is meeting its goals by asking for feedback from the workforce.     

Raise awareness of the importance of psychological safety in supervision: This typically enables people to speak up when they need help. Firms can also consider training and establishing an appropriate network of mental health first aiders.

Train managers and supervisors: The SRA’s thematic review highlighted that only a small number of firms offer dedicated training on how to deal with inappropriate behaviour or how to create a no-blame culture. This could mean that early opportunities to identify and address risks or provide support could be missed.

Available resources on these issues include:

If you have any questions about professional indemnity insurance, please contact your Marsh adviser.

Meet the authors

John Kunzler

John Kunzler

Managing Director

Victoria Prescott

Victoria Prescott

Senior Vice President

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