Unlicensed Legal Practice in Laos: A Growing Concern
The Voice from Phomsoupha & Son’s Lawyers
By: Xaypaseuth Phomsoupha, Solicitor-at-Law
The Lao PDR’s legal framework mandates that all lawyers practising within its jurisdictional territory register with the relevant authorities.[1] This requirement is designed to ensure that legal practitioners adhere to the country’s laws and ethical standards, thereby safeguarding clients’ interests and upholding the integrity of the legal profession. However, a growing number of freelance lawyers operating in the Republic have failed to comply with this fundamental obligation.
There is unequivocal that, even for cross-border projects, i.e., electricity generation projects financed by international loans, freelance lawyers who advise clients on Lao law-governed contractual arrangements shall have their lawyer’s licenses presented to the relevant authorities in Laos and be partnered with qualified Laotian lawyers.[2] Many unlicensed freelance lawyers have a limited understanding of Lao laws and regulations. This lack of familiarity can lead to unintentional violations, misinterpretations, and subpar legal representation.[3] In some cases, these lawyers may engage in illicit acts or deliberate misconduct, exploiting their clients’ trust and potentially causing significant harm.
The unlicensed practice of law poses a multi-faceted threat to the Lao judicial system. First and foremost, it undermines the rule of law by creating an environment where legal services are provided by individuals who have not demonstrated the requisite knowledge and competence.[4] Second, those who employ legal services rendered by unlicensed lawyers inadvertently violate the law. Third, unlicensed legal practices have evaded paying government taxes.[5] These can result in erroneous advice, flawed legal strategies, and, ultimately, unfavourable outcomes for clients.
Furthermore, the presence of unlicensed freelance lawyers creates an uneven playing field for local practitioners who have invested time and resources in obtaining the necessary qualifications and adhering to the country’s regulations.[6] This unfair competition disadvantages Lao lawyers and discourages aspiring legal professionals from pursuing careers.
The Laotian government and legal community must take decisive action to address this issue. Enhanced enforcement mechanisms, including stricter penalties for unlicensed practice, are essential. We have suggested retrospectively collecting VAT on the service from service users and providers[7] and prosecuting illegal lawyers for their misconduct.[8] Additionally, greater efforts should be made to educate freelance lawyers about Lao laws and regulations, perhaps through mandatory orientation programs or informational resources at the country’s entry point.
Moreover, raising awareness among the public about the risks of engaging unlicensed legal practitioners is crucial. By understanding the importance of seeking qualified legal representation, individuals and/or entities can protect themselves from potential exploitation and ensure their legal rights are adequately protected.
In conclusion, freelance lawyers’ unlicensed law practice in the Lao PDR is a pressing concern that demands immediate attention. By taking proactive measures to enforce existing laws, educate freelance lawyers, and inform the public, the government can safeguard the integrity of the legal profession, protect clients’ rights, and uphold the rule of law.
[1] Law on Lawyers 2016, subsequently amended
[2] Law on Electricity 2017
[3] The Civil Code 2018<http://www.laoofficialgazette.gov.la/index.php?r=site/list&legaltype=1&old=0>
[4] Ibid (n 3)
[5]The Penal Code 2017 <https://laoofficialgazette.gov.la/kcfinder/upload/files/1Oct2020_Lao%20Penal%20Code_English%2 0version.pdf>
[6] Ibid (n 1)
[7] Law on Taxation 2016, subsequently amended
[8] Ibid (n 5)