Legal Counsel are in-house legal advisors or lawyers who support and advise companies in legal matters. They are also known as company lawyers, in-house lawyers, corporate counsel or in-house counsel, although there may be certain differences in the specific areas of responsibility depending on the company.

In their work in a legal department, they dedicate themselves meticulously and with great discretion to a wide variety of tasks, such as negotiating and drafting contracts, representing the company in legal matters in court and other instances, and monitoring compliance with laws and regulations affecting the company. Their expertise and ability to interpret complex legislation make them indispensable employees in companies with an ongoing need for legal advice. The Legal Counsel typically works closely with other departments in the organization to ensure that legal issues are appropriately considered in business decisions and activities.

The legal qualification as the basis for the profession of in-house lawyer is regulated by law and requires special examinations. In order to become a lawyer, candidates must complete a law degree, gain practical experience and pass two state examinations. After successful completion, they can be admitted to the bar by the relevant bar association. A certain amount of experience as a lawyer is often a prerequisite for the profession of legal counsel - however, depending on the company and specific knowledge and requirements, it may also be possible for new entrants to enter the position of legal counsel directly.

Keyfacts Legal Counsel

What are the tasks of a legal counsel?

The Legal Counsel helps to ensure that the company minimizes legal risks, ensures compliance with laws and regulations and effectively manages legal matters. They have a wide range of responsibilities within a company or organization; the exact range of activities may vary depending on the industry, size of the company and specific requirements. In general, however, the main tasks of an in-house lawyer include the following:

Legal advice

The Legal Counsel advises the company on all legal matters relating to its business activities. This may include contract law, employment law, commercial law, tax law, data protection law, intellectual property and other areas of law.

Contract management

Legal Counsels are often responsible for reviewing, drafting and negotiating contracts to ensure that they are in the best interests of the company and are legally sound. This may include contracts with suppliers, customers, employees and other parties.

Compliance

The Legal Counsel ensures that the company complies with all applicable laws and regulations. This often includes the development of policies and training to ensure that employees understand and comply with relevant laws and regulations, thus minimizing legal risks.

Dispute resolution, litigation and representation

In the event of legal disputes, the Legal Counsel may participate in the development of legal strategies, conduct negotiations and, if necessary, represent the company in legal matters before courts, arbitration tribunals or other legal bodies. This may also include conducting litigation or defending against lawsuits.

Risk management

The Legal Counsel supports the company in identifying and assessing legal risks. This may include the development of risk mitigation strategies and the training of employees in legal matters.

Due Diligence

When the company is involved in mergers, acquisitions or other transactions, legal counsel often performs due diligence to ensure that all legal aspects are considered.

Internal training

Legal Counsels can provide training for employees to promote understanding of legal matters and ensure that the company complies with relevant laws and regulations.

Internal communication

Internal communication with other departments in the company is also part of the Legal Counsel's job. This ensures that all business activities comply with the applicable laws.

Cooperation with external lawyers

The Legal Counsel also works with external lawyers and consultants when specialized legal knowledge is required that goes beyond internal resources.

What skills does a legal counsel need?

The tasks of an in-house lawyer are varied and demanding. They require a broad range of skills in order to meet the increasing demands in the area of in-house legal advice.

Necessary skills of in-house lawyers at a glance

Specialist knowledge and legal expertise

A comprehensive understanding of German law is essential for in-house lawyers. They should not only know the current provisions, but also be able to interpret complex legal regulations and apply them to the individual situation of their company. They should also have knowledge of international law and specific areas of law that are relevant to the company.

Analytical skills

Legal Councels also need the ability to analyze complex legal issues, identify legal risks and develop pragmatic solutions.

Contract management and compliance

In-house lawyers should have in-depth experience in drafting, reviewing and negotiating contracts and the ability to protect the interests of the company. This also requires compliance knowledge to ensure that the company complies with laws, regulations and internal policies.

Negotiating skills

In-house lawyers also need strong negotiating skills in all matters in order to successfully conduct negotiations and represent the interests of the company.

Corporate understanding and risk management

Legal counsels should also have a deep understanding of their company's business goals, strategies and processes in order to contextualize and tailor legal advice to the company's specific needs. To this end, legal counsels should also have the ability to identify and assess legal risks and develop strategies to minimize them.

Communication skills

Working as an in-house lawyer also requires a high level of oral and written communication skills so that legal concepts can be conveyed clearly and concisely to different target groups within the company.

Organizational skills

As legal counsels usually work on several matters at the same time, strong organizational skills and good time management are essential. Structuring workflows, meeting deadlines and managing documents efficiently are crucial for success in this professional field.

Teamwork

In-house lawyers are often dependent on cooperation with various departments and team members within the company. The ability to work effectively in a team and the corresponding ability to cooperate are therefore important prerequisites.

Problem solving skills

In order to find innovative solutions to complex legal challenges, legal counsels should also have a great deal of creativity and problem-solving skills.

Integrity and ethics

Likewise, in-house counsel should demonstrate a high level of integrity and ethical behavior to ensure that the company's legal affairs are conducted in accordance with the highest standards.

These competencies help ensure that in-house counsel effectively contribute to managing their company's legal affairs and achieving business objectives in compliance with applicable laws and regulations.

How do you become a legal counsel?

In order to become a Legal Counsel in Germany, certain steps are usually required. In general, these are:

Legal training

Candidates must first successfully complete a law degree at a German university. Law studies generally last around six years and conclude with the first state examination in law. The second state examination in law is taken at the end of a practical training period (Referendariat). During the legal clerkship, which usually lasts two years, various stages are completed, including court stages, lawyer stages, administrative stages and an elective stage.

Admission as a fully qualified lawyer

After successfully completing the legal clerkship and passing the second state examination, graduates are designated as fully qualified lawyers. They can then apply to the local bar association for admission as a lawyer.

Gain professional experience

Starting a career as an in-house lawyer in a company is usually difficult - but not impossible. The choice for newcomers to the profession is rather limited, as employers prefer candidates with relevant professional experience. Many legal counsels in Germany therefore first gain experience as a lawyer in law firms or in other legal positions.

Professional development

First change window

The first classic transfer window for lawyers opens as soon as they can demonstrate their first professional experience; this is usually the case after around two years. A real asset here is training in an internationally active law firm, which continues to enjoy a very high status. Not only the legal craft, but also dealing with clients is learned. As these are mostly companies, it is often possible to gain an initial insight into the respective structures and associated legal challenges.

Second transfer window

A change to a company can also be an opportunity for lawyers in the second change window, i.e. after around 5-7 years of professional experience. Ideally, more senior positions, e.g. as senior legal counsel, possibly even with management responsibility, can be considered here. This is particularly conceivable as an alternative to becoming a partner in a law firm and can therefore also represent a real career step forward - especially as these positions bring with them corresponding remuneration, but above all also offer advantages in terms of work-life balance.

Further training and specialization

Legal counsels often specialize in certain areas of law. This can be achieved through further training, specialist lawyer courses or extra-occupational courses of study.

Perspective

After starting as legal counsel, lawyers can develop their career further, possibly into positions such as team or division leader, head of the legal department (Head of Legal) or general counsel or management. In addition to the development towards disciplinary management responsibility, there are also opportunities for purely professional development, for example by being in charge of a specialist area and acting as a specialist here. Further development and prospects naturally also include salary development.

How much does a legal counsel earn?

Training to become a lawyer takes years, and the final examination demands a lot from the candidates (assessors). And yet the path is worthwhile: the profession of lawyer in general, and of in-house lawyer in particular, is future-proof and lucrative. The salary is already impressive at the start of your career, and the sky is the limit.

According to the Federal Employment Agency's Remuneration Atlas 2022, legal advisors and in-house lawyers in Germany earn an average of 6,750 euros per month, or 81,000 euros gross per year. In addition to the basic salary, in-house lawyers can benefit from additional benefits such as bonuses, commissions or additional company benefits - depending on the employer and individual agreement.

In addition, experience, specialization, industry, company size and location play a not insignificant role in determining salary. Salaries can increase significantly with increasing professional experience and possible specialization in certain areas. In-house lawyers with several years of experience can achieve annual salaries of 100,000 to 200,000 euros and more per year. Legal counsel and in-house lawyers generally earn the most in the economically strong cities of Frankfurt am Main, Düsseldorf, Munich and Stuttgart.

Note: The salary figures given here are for guidance only. Similar to many other sectors, it is difficult to make general statements about individual salaries for the legal counsel profession.

Difference between law firm and company

Thanks to the "new" right of exemption from the statutory pension insurance obligation, an important point has been clarified and a move to a company has become more attractive again. In terms of salary, however, the switch from the law firm to the corporate world is often accompanied by financial losses. However, for many candidates, the switch from the law firm to the corporate world pays off in terms of factors such as a better work-life balance and predictability, rather than in cash.

Accordingly, switching to a company does not have to be a step backwards, but is a good option, especially as not everyone is looking for a partnership or similar.

What is a legal counsel?