Decision-making criteria
Training Contract, decision to waive the minimum salary
Last updated: 22
February
2012
This criteria came into effect on 22
February
2012.
The previous version is available in the archive.
Introduction
This criteria applies to decisions made in respect of waiving the minimum salary paid to trainees undertaking training contracts. Delegated authority
This is set out in delegation [d71]
Criteria in statutory rules
Criteria
The following criteria are relevant for the decision-maker but are not exhaustive:
- the applicant submits a fully completed application form with the appropriate fee;
- the firm:
(a) explains the reasons why a waiver is requested and provides evidence of the exceptional circumstances preventing payment of the minimum salary;
(b) provides details of the salary it wishes to pay (including any benefits in kind and any support given towards CPE/LPC fees);
(c) provides details of when the salary will be reviewed;
(d) provides details of starting and current salary of other trainees (if any) within the firm;
(e) provides a training and development plan for the trainee;
(a) confirms acceptance of the salary offered;
(b) provides details of their personal financial circumstances; and
(c) provides their views on the application;
- The application has the support of both the trainee and the firm.
Financial circumstances alone will not be sufficient grounds for granting a waiver. An agreement of the trainee to accept a reduced salary in itself will not be sufficient grounds for granting a waiver. Taken together, financial circumstances and trainee’s agreement will not represent exceptional circumstances and therefore will not be sufficient grounds either.
Policy
The policy applicable to trainee minimum salary appears within the SRA Training Regulations 2011 Part 2–Training Provider Regulations, approved by the Solicitors Regulation Authority Board on 17 June 2011.
All applications for waivers will be assessed using the SRA waivers policy, with this document acting as category-specific guidelines.
Case study
The example below is illustrative and does not set any type of precedent. Each matter is considered on its own facts and merits.
A firm applies to waive the minimum salary payable to its trainee. The relevant form is signed and dated by both the training principal and the trainee. This indicates the trainees acceptance of a reduced salary.
The trainee asks for a salary of £12,000 a year, rather than the minimum salary of £16,650 for a firm based outside central London. The firm commenced business six months ago and does not, at this stage, have the resources to pay the required minimum salary.
We are not satisfied that exceptional circumstances exist for why the firm can only pay a reduced salary for the period of the training contract. The application is refused.