The rise of female-led law firms in Canada

The legal profession in Canada has a long-standing reputation for its commitment to justice and maintaining societal order. However, underling this layer, there exists a pressing concern: the widespread issue of burnout among female lawyers. This phenomenon not only impacts the well-being of these professionals but profoundly shapes their career trajectories leading many to depart from traditional law firms and establish their practices. After attending the Ontario legal conference, I discovered an intriguing trend in which an increasing number of female lawyers leave large prestigious firms to establish their practices. While this movement can be viewed as empowering, it also sheds light on a fundamental problem within the legal industry: why are so many female lawyers feeling compelled to leave traditional firms in the first place? This article delves into the impact of burnout on female lawyers in Canada, its connection to the rise of women-led law firms, and the broader implications for gender equity in the legal profession.

The prevalence of burnout among female lawyers in Canada

Recent studies have illuminated the mental health challenges faced by many within the Canadian legal community. The National Study on the Psychological Health Determinants of Legal Professionals in Canada revealed over half of the respondents experienced significant psychological distress and burnout. Notably, the rates were significantly higher among women, younger professionals, and those from marginalized groups displaying that burnout remains a critical issue within the Canadian legal community. ¹ A 2016 report by the Justice Education Society of British Columbia highlighted that only 66% of women called to the bar in 2003 were still practicing in 2008, compared to 80% of their male counterparts. Furthermore, 71% of women who left their positions cited work-life balance as a primary reason, while 61% pointed to the work environment as a contributing factor. ² These challenges have contributed to a persistent gender gap in the profession, as of 2019, there were 13% more male lawyers than female, with parity for lawyers who entered the profession more recently. ³

These findings align with the view from the Federation of Law Societies of Canada, highlighting the systemic issues contributing to poor mental health in the legal profession. Heavy workloads, long hours, high billable hour targets, and the expectation to be constantly available, contribute to chronic stress and work-life imbalance-a reality that disproportionately affects women. ⁴ While male lawyers experience burnout, women often face additional burdens, contributing to higher burnout rates. Many women juggle professional responsibilities alongside societal and familial expectations, such as parenting, eldercare, and domestic duties. The stress of navigating both work and home life lead to higher burnout rates among female lawyers, indicating a perception of limited upward mobility and higher attrition rates from traditional law firms. Women are found to leave large law firms at nearly twice the rate of men, with majority citing exhaustion, lack of flexibility, and limited upward mobility as the main drivers. Addressing these challenges is not just about gender equity rather about changing the behaviours and issues from within the profession. A more inclusive and flexible work environment fosters better work-life balance, reduces burnout, and improves overall job satisfaction for all lawyers, regardless of gender. Additionally, retaining diverse legal talent strengthens firms by enhancing innovation, broadening perspectives, and improving client representation. This ultimately benefits the overall industry, the legal professionals, and its clients.

A response to burnout

In response to these challenges, there has been a noticeable increase in female lawyers departing traditional firms to establish their practices. In Canada, the legal profession continues to face challenges in retaining female lawyers, leading many to seek alternative career paths, including establishing their practices. Data from the Law Society of Alberta indicate that within their first five years, 57% of female lawyers and 49% of male lawyers leave private practice. This trend is not isolated to Alberta; similar patterns are observed nationwide. ⁵ This trend has become particularly evident in recent years, with the key issues women in law face. ⁶

• Gender Pay Gap
• Work-life balance and Flexible work arrangements
• Intersectionality and Diversity

The desire for entrepreneurship goes beyond seeking happiness and increased flexibility as it could be seen as a response to systemic barriers that hinder women’s progress in traditional firms. Many female lawyers have observed that, despite their qualifications and hard work, they encounter obstacles to promotions and are excluded from key decision-making processes—this being the “Glass Ceiling.” To overcome this hurdle, professionals must actively challenge stereotypes and biases that perpetuate gender inequality in the legal profession. By advocating for inclusive hiring and promotion practices, promoting mentorship and sponsorship programs for women, and fostering a culture of respect and equal opportunity, law firms can break down barriers and create pathways to leadership for talented female lawyers. ⁷

The success of these female-led firms has the potential to change the narrative surrounding women in law, serving as a testament to resilience and inspiring the next generation of female legal professionals. However, the trend also raises important questions: Are women leaving traditional law firms by choice or due to systemic barriers? Does this movement represent progress, or does it highlight the profession’s failure to support female lawyers? While the rise of female-led firms showcases women’s resilience and leadership, it could also correlate to deeper structural inequalities within the legal profession.

The intersection of parenthood, parental leave, and career progression

Parenthood is a significant factor influencing career decisions among female lawyers. Despite improvements in workplace policies, many women still experience substantial career setbacks after having children. One of the key issues is the lack of paid parental leave in private law firms, which makes it financially challenging for women to take time off. In Canada, EI offers two options for parental benefits: the standard and extended which parents can choose to share. When sharing, couples may be eligible for an additional five weeks of standard benefits or eight weeks of extended benefits. Some employers offer “top-up” payments to supplement EI benefits during pregnancy and parental leave. These are not required by law but can be a valuable employee benefit. However, the availability and extent of these benefits can vary widely, leading to disparities in support for employees during parental leave. This inconsistency can make it financially challenging for some women to take extended time off, especially if their firm does not offer substantial top-up benefits. ⁸ Additionally, while parental leave is offered to both parents, men rarely use of the time off and when they do, take significantly less time than women.

Another issue is the “Motherhood Penalty,” which is a term that refers to the economic disadvantages women often face in the workplace after becoming mothers. Despite progress, working mothers still encounter significant barriers, such as inadequate maternity leave support, limited childcare options, and insufficient flexible work arrangements. ⁹ Many women encounter difficulties when returning following parental leave, finding a decrease in their client base or a reduced likelihood of being considered for high-profile cases as well as promotions. As a result, many women have chosen to leave traditional firms and establish their practices, seeking to create a more flexible and family-friendly work environment.

The downsides

The legal profession in Canada has seen a notable increase in female representation over recent decades. However, this progress has not been uniformly reflected across all levels of traditional law firms, leading to a decline in female representation in senior positions. The statistics, released as part of the LSO’s 2018 annual report, show that about 12.4 percent of lawyers in Ontario were male law firm partners, compared to only 4.3 percent of lawyers who were female partners. In Ontario, 5,168 out of 23,594 male lawyers were partners compared to 1,770 out of 17,982 women lawyers. ¹⁰ As more women leave traditional firms, the number of female partners and lawyers declines, resulting in a scarcity of mentorship opportunities for younger female lawyers and underrepresentation at the top. Networking plays a crucial role in career advancement, yet women may encounter barriers to networking opportunities, such as exclusion from informal social gatherings or industry events where important connections are made. ¹¹

The departure of women from traditional law firms not only perpetuates gender inequality but also diminishes the impetus for necessary reforms within these institutions. While male mentors can and do provide valuable guidance, research indicates that women often benefit more from mentorship and sponsorship that directly addresses the unique challenges they face in the legal profession. Reuters discusses how having a sponsor—someone who actively advocates for a lawyer’s advancement—is crucial for career progression within law firms. This form of support is often less accessible to women, highlighting the need for intentional mentorship programs. ¹²

The need for systemic change

To retain female lawyers and promote a more inclusive legal profession, law firms should adapt and implement meaningful changes. Key reforms could encompass flexible work arrangements, and reasonable billable hour targets, to accommodate diverse work-life needs. Equitable parental leave policies need to be established to ensure that women are not penalized for taking time off to care for their families. However, even if equitable leave policies are established, they will not achieve their full impact unless men feel equally comfortable taking them, without fear of career repercussions. If men hesitate to take parental leave due to workplace stigma, the burden of caregiving will remain disproportionately placed on women, reinforcing the very cycle that hinders their career progression.

To create a legal profession where talent determines success, firms should opt to implement concrete strategies that actively support women’s career advancement. Ensuring equal access to leadership opportunities is essential—this means actively increasing the number of female partners through fair promotion practices and targeted initiatives. Additionally, mentorship programs play a crucial role in professional growth, providing women with guidance, career insights, and strategies to navigate workplace challenges. Firms must uphold equity in case distribution and decision-making, ensuring that all employees’ contributions, perspectives, and expertise are valued at every level. ¹³ To retain top talent and build a legal profession that reflects the reality of today’s workforce, traditional firms should consider modernization and value adaptability. The industry cannot afford to keep losing highly qualified female lawyers simply because they refuse to conform to outdated workplace norms that no longer serve the needs of today’s professionals.

Conclusion

The increasing departure of women from private practice, whether to establish their firms, transition in-house or leave the profession entirely, serves as both a warning sign and a call to action. The rise of female-led firms is a testament to the entrepreneurial drive, leadership, and strategic ingenuity of women in law. However, this should not be used to justify established enterprises’ failure to address the systemic concerns that are driving them out. If these concerns are not addressed, the legal industry will suffer the repercussions, including the loss of top female talent, stagnation in leadership diversity, and a profession that is increasingly disconnected from the population it serves. It is time for a change and the question remains whether the legal industry will step up—or be left behind.

Ruhana Chowhan is an articling student at Innovate LLP.