Australian Lawyers Struggle Under Billable Hour Model

Top-tier law firms push for high billable targets to boost productivity, but the pressure is degrading lawyer wellbeing and driving talent away.

In Australia, around two-thirds of lawyers work in firms where daily billable hour expectations can range from 6.5 to 7.5 hours. But the math doesn’t add up, non-billable tasks like mentoring, team meetings, and business development don’t count, meaning many lawyers are logging 10-hour days just to stay afloat. Despite putting in long hours comparable to overseas firms in the US and UK, Australian lawyers earn significantly lower salaries, forcing many to question if the high-stress workload is worth it.

The issue lies not only in how work is recorded but in how lawyers are evaluated. Even firms exploring fixed-fee alternatives still track performance by billable targets. This creates an unhealthy reliance on raw billing figures and discourages efficiency. Lawyers in smaller teams face even harsher challenges, often struggling to meet targets due to rigid billing structures and workloads that don’t scale the same way as large deals handled by big teams.

This system is not just stressful, it’s also inefficient. The constant race to meet billable targets promotes long hours over meaningful, high-quality output. Promotions and bonuses are still tied to time clocked, leaving those who work faster or more effectively at a disadvantage. It’s a model that’s out of sync with modern values around work-life balance and productivity.

Some smaller firms have already broken away from the billable hour culture. They treat lawyers like professionals in other industries, assessing their performance based on the quality of work and meeting client needs rather than how many hours they log. These firms still work hard, but when tasks are done, lawyers can go home without pressure to manufacture hours. It’s a system that seems more humane, and increasingly necessary.

Source: Australian Financial Review, Law Fuel, Support for Lawyers