In the circular, the Bar Council claimed this has resulted in lawyers being subjected to abusive and unfair practices.
Lawyers who spoke to FMT said they were shocked that the council would need to address such matters given that they were entirely within the control of the law firms.
Several practitioners pointed out on social media that lawyers enter into such deals entirely on their own accord.
Former Bar Council president Salim Bashir said it was essential for lawyers to have in place a written agreement with their clients governing the terms of their engagement, including as to the payment of retainers and legal fees.
“Section 116 of the Legal Profession Act 1976 allows lawyers to enter into a written agreement with clients regarding legal fees. To avoid disputes, lawyers should discuss the agreed fee structure and itemise the work and expenditure in their invoice.
“Lawyers who believe that the clients have breached a written agreement to pay legal fees can terminate their engagements and apply to be discharged from acting on their clients’ behalf. In certain instances they hold a lien for fees which can be enforced,” he said.
One lawyer, who spoke on condition of anonymity, asked why the Bar Council was focussed on such matters when there are more pressing national policy issues that require attention.
“Legal firms accept cases according to their clients’ needs and affordability. How they work out a payment scheme is entirely left to the two parties. We all know this has been happening for a long time.
“Yes, collecting payments is an issue for some firms but why should the Bar Council interfere in a ‘willing buyer, willing seller’ agreement? Lawyers should be prepared for such outcomes before agreeing to take on a case,” he told FMT.
In a circular to members issued last month, Bar Council secretary Murshidah Mustafa said there were reports of clients failing to make any upfront payment or pay a deposit when engaging lawyers. As a result, lawyers frequently have to bear significant case-related costs out of their own pockets.
She said some of these cases stretch over lengthy periods of time and the fees paid are often disproportionate compared to the work done by the lawyers.
“This situation places undue financial strain on lawyers, many of whom already face challenges in maintaining a sustainable practice.
“We understand that for those affected, the fear of losing future work or straining relationships with existing clients may make it difficult to address these issues openly,” she said.
Murshidah said the Malaysian Bar is committed to understanding this matter more comprehensively and invited members to come forward with any related information or experiences.
She assured complete confidentiality to those who share their experiences, recognising the sensitivity of such disclosures and the potential risks to income security.
“Our aim is to address this matter holistically, ensuring that the legal profession is treated with the fairness and the respect it deserves,” she said.
FMT has reached out to Murshidah for comment.