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Slater & Gordon Settles Long-Running Lawsuit with Sacked HR Executive

SYDNEY - Slater & Gordon, the private equity-owned law firm, has settled a long-running lawsuit with its former chief people officer who accused the company of deliberately underpaying employees and sacking her for raising the issue.

The settlement, reached last week, brings an end to the high-profile dispute between Slater & Gordon and Alicia Gleeson, who sued the firm in the Federal Court last year. Both parties have agreed to pay their own legal expenses as part of the deal.

The case shone a light on the inner workings of Slater & Gordon, one of Australia's largest listed law firms, which was acquired by private equity firm Anchorage Capital in 2017 after a disastrous overseas expansion.

Gleeson, Slater & Gordon's former head of human resources, alleged she was dismissed in 2020 after raising concerns about the firm's compensation practices. She claimed the company was systematically underpaying its lawyers and other staff, in part to boost profits ahead of a potential sale or public listing.

Industry sources familiar with the matter said the settlement likely included a payout to Gleeson, though the exact terms were not disclosed. Slater & Gordon declined to comment on the details.

The case highlighted the challenges facing Slater & Gordon as it works to rebuild under new ownership after a tumultuous period. The firm was once a pioneering plaintiff law firm but ran into financial trouble following its ill-fated $1.2 billion acquisition of the UK's Quindell in 2015.

"This settlement draws a line under a messy chapter for Slater & Gordon as it seeks to restore its reputation and return to profitability," said one legal industry analyst, who declined to be named.

Gleeson's lawsuit had alleged Slater & Gordon's compensation policies were designed to artificially inflate the firm's financial performance, which could have implications for any future public market listing or sale.

The settlement comes as the legal services sector faces growing scrutiny over issues like work-life balance, diversity and inclusion. Retaining top talent has emerged as a key challenge, with many firms boosting salaries and benefits to attract and keep lawyers.

Representatives for Slater & Gordon and Gleeson did not respond to requests for comment. The terms of the settlement were not disclosed.