In the organisational structure of an enterprise, departments such as legal, accounting, administration – human resources play pivotal roles in the management, operation and are closely associated to the development of an enterprise. However, the expense for an enterprise to maintain a legal team is relatively substantial. Additionally, enterprises must frequently recruit personnel for the legal department due to a relatively high turnover rate for this position. This leads many enterprises today to prioritise the use of in-house legal services from reputable law firms to align with the specific business needs and the practical situation of the enterprise. Through this article, Phuoc & Partners will help readers have a more objective and in-depth view of the roles and benefits of in-house counsels in enterprise.
In-house counsels’ roles in enterprises
In-house counsels are typically experienced lawyers or group of lawyers that have provided legal advice on various legal issues for enterprises across multiple sectors, industries, and professions. It is for this reason that in-house counsels play a significant role in the operation and development of an enterprise. These roles are most prominently demonstrated in the following areas:
In-house counsels play a role in ensuring that every aspect of the enterprise’s activities complies with the applicable legal regulations. They assist the enterprise in ensuring that its internal operations, regulations, policies, contracts, transactions, and business strategies adhere to current legal provisions, minimising risks and disputes for the enterprise. Additionally, at the request of the enterprise, In-house counsels can conduct legal compliance checks for the enterprise and provide solutions to ensure the enterprise complies with legal regulations.
Strategic legal advisory:
In-house counsels not only play a role in ensuring compliance and internal operations but also contribute to the development of legal strategies and shaping the overall business landscape for the enterprise. They provide strategic legal advice based on practical experience and a comprehensive understanding of policies, laws, directions, and the development of sustainable business cooperation relationships between the enterprise and partners in various areas such as business, trade, labour, investment, taxation, insurance, data protection, etc.
Representing enterprise in disputes
During the operation of an enterprise, the emergence of disputes is inevitable. Through authorisation, in-house counsels can represent the enterprise to protect its legal rights and interests during the dispute resolution process. With extensive knowledge and experience, in-house counsels sometimes assist parties in negotiations to reach an agreement on settlement, avoiding the costly resolution of disputes through litigation or arbitration.
Additionally, in-house counsels can represent the enterprise in dealings with partners, customers, employees, or any other third parties. In many cases, enterprises may request the participation of in-house counsels in meetings, inspections, and audits conducted by state authorities to protect the legitimate rights and interests of the enterprise.
Benefit of in-house counsels in enterprises
Reduce internal operation expenses
The usage of in-house counsels based on the business situation in each stage or for specific matters allows the enterprise to proactively negotiate with in-house counsels to adjust working hours, limit expenses, and reasonably handle the number of cases, instead of operating a legal team regularly with fixed maintaining costs regardless of the business situation and actual needs of the enterprise. From this, it can be seen that utilising services from in-house counsel significantly reduces costs for the enterprise. Additionally, the enterprise also minimises the risk of administrative penalties or disputes related to claim of compensation and fines with partners, customers, employees, or other third parties.
In-depth and practical advice:
As lawyers with broad knowledge and extensive experience in the legal areas they provide services as well as a deep understanding of the business landscape in the market, in-house counsels will offer the most specialised, practical, objective, and relevant legal advice.
Serving as per the needs and time of enterprises
With the nature of being an independent legal service provider, in-house counsel will offer legal services flexibly according to the client’s requirements, with fees designed to match the workload. This creates convenience and initiative from both sides in their work, helping the enterprise to shape its operational structure and costs in the short and medium term.
Suitable for small to medium-sized enterprises
The majority of enterprises in Vietnam are often of small to medium scale. Therefore, saving expenses on maintaining an in-house legal team and utilising in-house counsel service provides an efficient solution in terms of effective resource management as well as optimal performance in enterprise management and operations.
Above is the foundation related to the roles and benefits of in-house counsels in Enterprise that Phuoc & Partnersshare with readers. If you encounter any difficulties related to the legal field, please contact us. Phuoc & Partners is a law firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Da Nang. Phuoc & Partners is also considered one of the law firms with a team of staff specialising in the leading legal field in Vietnam and whose practice areas are rated top in the legal market such as Labour and Employment, Taxation, Mergers and Acquisitions, and Litigation. We are confident that we are one of the Law Firms providing the best legal services to our customers.