Lateral moves between Canadian law firms: when and how

A lateral move is the usual way lawyers in private practice change their pay, their practice, or their path to partnership. Done well, it is a short, quiet process that ends with a clean handover. Done badly, it can strain relationships with the firm you leave and the clients you served. Here is how to decide whether to move, how the process usually runs, and what your professional rules require when you go.

Good reasons to move

Lawyers on the Canadian Law Forum list the common reasons as pay, a change of practice area, a poor work environment, and wanting more variety. They also warn that a modest raise may not be worth leaving a firm where you are well regarded (Canadian Law Forum).

For senior associates aiming at partnership, one useful test from the same thread: is the obstacle the group (too little work, or junior partners ahead of you) or you (the firm does not see you as a partner)? A move can fix the first. It rarely fixes the second, because partnership depends on a business case you would have to make at the new firm too (Canadian Law Forum).

When demand is strongest

Mid-level associates are the easiest to place. A legal search firm's February 2026 review of Canadian hiring said employers continue to prioritise lawyers with about four to five years of experience, with demand in commercial litigation, corporate, banking, restructuring, and employment law in the major cities (Taylor Root). Junior and senior moves happen too; they just depend more on a specific opening.

Your own calendar matters as much as the market. Work out when your bonus is paid and whether you must still be employed on that date, and avoid giving notice just before a trial or closing you are central to. Our guide to Bay Street associate bonuses covers the bonus questions to ask both firms. To see which firms are hiring laterally right now, follow the lateral moves tracker.

How the process usually runs

The matters list deserves care, because it describes client work you must keep confidential. Our guide to writing a representative matters list covers what to include and how it differs from a conflicts disclosure.

Read your agreement first

Before you accept an offer, read your employment or partnership agreement for notice periods, restrictive covenants, bonus and clawback terms, and what happens to work in progress.

• Non-competes in Ontario. Employers have been barred from entering into non-compete agreements with employees since October 25, 2021, with exceptions for certain executives and the sale of a business. Agreements signed before that date are not caught by the ban (Government of Ontario).
• Non-solicits and confidentiality. The ban does not cover non-solicit or non-disclosure agreements, and a clause labelled as a non-compete may be treated as a non-solicit if that is what it actually does (Government of Ontario).
• Partners. Partnership agreements usually set their own withdrawal terms. Alberta's guide tells departing lawyers to review the agreement and negotiate withdrawal terms if it does not cover them (Law Society of Alberta).

Other provinces have their own rules on restrictive covenants. If the terms are unclear, get advice from an employment lawyer before you resign.

What the rules say about leaving

Most Canadian law society codes follow the Federation of Law Societies' Model Code (Federation of Law Societies), and each deals with lawyers leaving a firm, though the numbering differs. Alberta numbers its rule 3.7-9 (Law Society of Alberta), Newfoundland and Labrador refers to section 3.7-7A (Law Society of Newfoundland and Labrador), and British Columbia covers it in the commentary to rule 3.7-1 (Law Society of British Columbia). Check your own province's code.

• Notice to clients. The lawyer and the firm must make sure clients with current matters that the departing lawyer has conduct of, or is substantially involved in, get reasonable notice and are told their options, and must take reasonable steps to get each client's instructions (Law Society of Alberta).
• Clients choose. Neither the lawyer nor the firm owns the client. A client can stay with the firm, follow the lawyer, or go elsewhere (Law Society of Alberta).
• Junior roles. Alberta's guide says notice is not needed where the departing lawyer had only a subordinate role or little direct client contact, judged from the client's point of view (Law Society of Alberta).

Telling your firm and your clients

Tell your firm first. Alberta's guide says a departing lawyer should contact clients only after the firm has been told, and that a joint notice from the lawyer and the firm is preferred (Law Society of Alberta). The notice should be neutral in tone (Law Society of Alberta).

A joint notice confirms the departure date, gives the client's options, explains fees owing and what happens to any retainer, flags upcoming deadlines, and includes a form to keep or transfer the file, with a date to reply (Law Society of Alberta). The Law Society of British Columbia publishes precedent letters and a client election form for the same purpose (Law Society of British Columbia).

While you are still at the firm, Alberta's guide says not to urge clients to leave, criticize the firm, or ask clients to send files to your new firm. It also says not to copy files or client lists using firm resources without permission, or to secretly remove files (Law Society of Alberta).

A handover checklist

1. List every file you work on and mark which ones clients may move with you.
2. Give the firm a written list of deadlines on files you are not taking.
3. Move trust funds only on the client's signed direction, and pass on any trust conditions or undertakings (Law Society of Alberta).
4. Agree how calls, mail, and email addressed to you will be handled after you leave.
5. Update your address and status with your law society and your professional contacts.

Then refresh your lawyer resume for the next time. Partners moving with clients should also prepare a lateral business plan.