Paralegal Rules of Conduct in Ontario: a practical guide for licensees

The Paralegal Rules of Conduct are the house rules for paralegals in Ontario. They set out how a paralegal should act with their clients, their colleagues, and the tribunals. This article is for paralegals in Ontario who want to know more about the Rules, to avoid both regulatory action and client dissatisfaction.

What are the Paralegal Rules of Conduct in Ontario?

Among Canadian jurisdictions, Ontario is unique because it licenses and regulates paralegals who work in the province. One way of regulating licensed paralegals is through the Paralegal Rules of Conduct (Rules) of the Law Society of Ontario (LSO). This is in addition to the LSO's Rules of Professional Conduct, which apply to licensed lawyers and paralegals in Ontario.

The Paralegal Rules of Conduct have nine rules:

• Rule 1: defines key terms used in the Rules
• Rule 2: contains rules on professionalism, such as integrity and civility, undertakings, harassment and discrimination
• Rule 3: discusses the paralegal's relationship with their clients, such as competence, confidentiality, conflict of interest, client property, and withdrawal
• Rule 4: sets the paralegal's duty to their clients and the tribunals, including rules on how they advocate for their clients' cases
• Rule 5: establishes the rules on fees and retainers for paralegals (e.g., contingency fees, joint retainers, fee splitting, referral fees)
• Rule 6: related to the paralegal's duty to the administration of justice, including the rules on public appearances, statements, and unauthorized practice
• Rule 7: imposes the paralegal's duty to act with courtesy and good faith in all their dealings with other legal professionals and their clients
• Rule 8: covers practice management, including rules on marketing, advertising, and insurance
• Rule 9: sets the paralegal's responsibility to the LSO, and rules related to professional misconduct and conduct unbecoming as a paralegal

To help paralegals and their clients, we will discuss these rules below. In addition to the Paralegal Rules of Conduct, you may want to also check this video series from the LSO on the licensing process for paralegals in Ontario:

Tired from your work in the legal profession? Check out this article on lawyer well-being, which works as a mental health guide for both lawyers and paralegals in Ontario.

Paralegal rules on professionalism

The Paralegal Rules of Conduct set out several key points about the standard of professionalism for paralegals, including:

• provide legal services within their competence: a paralegal must perform services to the standard of a "competent paralegal," which includes proper legal knowledge, fact investigation, analysis, and clear advice for the client
• offer limited scope retainers: paralegals in Ontario may agree to handle only part of a legal matter, as long as they clearly explain the limits of their work, and confirm those limits in writing whenever practicable
• act as a mediator: paralegals can also act as mediators, and when they do, they must make it clear that they are not representing either party and that their role is to help both sides work toward a resolution
• act for clients with diminished capacity: paralegals should maintain a normal professional relationship as much as possible, but if the client is no longer able to manage their legal affairs, the paralegal must take proper steps to have a representative appointed
• can delegate tasks, but must stay in charge: they must assume complete professional responsibility for all business entrusted to them, supervise staff properly, and meet financial obligations incurred on clients' behalf unless they clearly say otherwise in writing

As such, these are key duties that Ontario's paralegal should keep in mind when providing services for their clients.

What a paralegal is not allowed to do

On the other hand, here are the things that paralegals in Ontario cannot do:

• cannot take on work they are not competent to handle: if a paralegal realizes they lack the needed skills or knowledge, they must decline to act for the client, and get help from another lawyer with the client's consent
• cannot mislead clients about what is covered: under a limited scope retainer, a paralegal must describe the services honestly and make sure that the client understands what the paralegal will and will not do
• cannot let non-licensees provide legal services: just like licensed lawyers, paralegals in Ontario must not permit a non-licensee to provide legal services, be held out as a licensee, or perform duties that only a paralegal or lawyer may perform
• cannot mislead a tribunal or subvert evidence: when interviewing witnesses, a paralegal may seek information from any potential witness, but must reveal their interest in the matter and must not suppress evidence or persuade a witness to avoid testifying

Rules on a paralegal's dealing with clients

Professionalism remains the foundation of dealing with clients, whether you're a lawyer or a paralegal in Ontario. Generally, paralegals must act with integrity and civility. They must also be courteous and act in good faith with clients, tribunals, other licensees, and everyone else they deal with in practice.

When it comes to other licensees, a paralegal cannot talk directly to a represented person about a matter. If they know, or should infer, that a person is represented by another licensee, they must communicate through that licensee or get that licensee's consent.

Paralegals must also avoid using threats of charges as a tactic without a proper basis. They must not threaten, or advise a client to threaten, criminal or regulatory complaints only to gain an advantage.

The Paralegal Rules of Conduct also address harassment and discrimination. Paralegals must not sexually harass, or otherwise harass or discriminate against anyone on grounds such as race, sex, age, disability, family status, or other protected grounds under the Human Rights Code (HRC).

Here's another video which explains the licensing process for paralegals in Ontario, and the functions that paralegals can do under the Rules:

Bookmark our Practice Management page for more legal resources tailored to Ontario lawyers and law firms to improve the way you do your daily work.

Rules on fees and retainers for paralegals

Here are some of the important rules when it comes to fees and retainers that are applicable to paralegals in Ontario:

• when charging reasonable fees and disbursements: a client's account must show fees and disbursements separately, and if a court reduces the fees or disbursements, the paralegal must refund the difference
• prohibition on taking money from trusts: for instance, a paralegal cannot freely take the money from a client's trust for their fees, and they can only withdraw the fees from the trust when allowed by the LSO's by-laws
• when using contingency fees: while paralegals can use contingency fees in some matters (except for family law, Criminal Code, or other criminal or quasi-criminal matters), they must follow the Solicitors Act and regulations
• when fees cannot be charged: this applies when working through a civil society organization; however, when a paralegal provides legal services to an organization, they cannot indirectly charge a fee to the person receiving the legal help, although they may charge proper disbursements under the Rules

Rules on marketing, advertising, and insurance

Rule 8 of the Paralegal Rules of Conduct contains detailed rules on the marketing and advertising activities of paralegals:

• marketing must match the same integrity standard as client work
• any public message about services should be honest, clear, and not misleading
• advertising should be courteous, fair, civil, and in good faith with everyone
• marketing must not include false promises about what a paralegal can do
• marketing cannot claim special expertise or results that the paralegal cannot actually deliver
• ads should avoid revealing client identities or sensitive facts, unless there is informed consent

Rules on insurance for paralegals

Insurance is part of responsible practice management for paralegals in Ontario, as well as for lawyers. The Paralegal Rules of Conduct makes it clear that a paralegal is professionally responsible for all businesses entrusted to them and must supervise their practice properly, which includes managing financial risk and client protection. In practice, this means treating professional liability insurance as a core part of running a file, and not just an add-on to marketing claims for paralegals.

The Paralegal Rules of Conduct: A playbook to abide by

The Paralegal Rules of Conduct are not just a checklist that sits on a shelf. They are the daily guide for how a paralegal serves clients, deals with colleagues, and appears before tribunals. When a paralegal treats these Rules as part of routine practice, they lower the risk of complaints, keep trust strong, and help protect both the client relationship and the paralegal's own licence.

Check out our Events page for the upcoming lawyer conferences and other gatherings for legal professionals across Canada, where on the Paralegal Rules of Conduct are also discussed.