Why do many companies choose to recruit lawyers instead of lawyers as their permanent legal advisors?

Legal is a functional department within a company that reviews contracts. Legal advisors are external service organizations that interface with the company's external litigation matters and provide legal advice. Many companies have strong legal teams and do not need to hire separate formal consultants. Due to limited funds, some companies cannot afford legal advisors all year round. Corporate legal affairs are equivalent to employees in a company and need to deal with daily legal affairs, even those that have nothing to do with law. When signing a labor contract with an enterprise, wages need to be paid normally. Legal consultants are external lawyers of enterprises who cooperate with enterprises and provide relevant legal services according to service contracts.

The company's legal affairs department will have a better understanding of the company's operating conditions and industry characteristics, and a more thorough understanding of the legal regulations related to the company and industry. However, because of this, compared with the industry-wide contact and practical experience of practicing lawyers, it is relatively narrow. When encountering some legal disputes in the business process, it may be difficult to grasp the overall situation and provide comprehensive and effective legal opinions; the knowledge of external legal consultants Broad coverage, familiar with laws and regulations in different industries, and rich practical experience. If a company encounters major legal problems, they can be well controlled and resolved, but the economic costs are too high and difficult to grasp, and the timeliness of services is difficult to guarantee. It's easy to worry if secrecy is necessary.

Legal affairs are the personnel of the enterprise, forming labor relations for the enterprise, making it easy for the enterprise to manage and use. The lawyer and the company have an employment relationship, and they work according to the entrustment contract, and the company cannot use it at will. Generally speaking, the cost of corporate legal services is much lower than that of external lawyers. Legal counsel can be involved in all legal or compliance matters for the company. The lawyer will charge additional service fees outside the contract. Corporate legal affairs have more ownership and heavier responsibilities for the enterprise, and the enterprise determines the future and destiny of the legal affairs. Therefore, qualified companies choose to recruit legal counsel.

Corporate legal affairs are equivalent to internal employees of the enterprise. They need to handle the daily legal affairs of the enterprise and provide relevant legal services according to the contents of the signed service contract. The company's legal affairs department will have a better understanding of the company's operating conditions and industry characteristics. If a company encounters major legal problems, they can be well controlled and resolved, but the economic costs are too high and difficult to grasp, and the timeliness of services is difficult to guarantee. It's easy to worry about things at work if confidentiality is required.