RAC and legal firm Irwin Mitchell have created a joint venture in Sri Lanka to handle uninsured loss recovery (ULR) claims. By 2009, Irwin Mitchell plans to employ 100 lawyers in the new operation.

RAC and legal firm Irwin Mitchell have created a joint venture in Sri Lanka to handle uninsured loss recovery (ULR) claims. By 2009, Irwin Mitchell plans to employ 100 lawyers in the new operation.

It is understood that the lawyers will be Sri Lankan nationals who have been trained in the UK. New ULR work transferred to Irwin Mitchell on 1 July 2006 and existing work will be transferred by October 2006.

The decision to create the joint venture comes after a review by Alan Sanderson, director of RAC Legal Services, of the business model and processes that underpin the Legal Services business. This began in November 2005.

A large proportion of the ULR work will be offshored by Irwin Mitchell to Sri Lanka. The remaining ULR work will be handled by Irwin Mitchell's team in Sheffield.

RAC said the decision to outsource the ULR work to Irwin Mitchell will lead to the loss of 36 jobs in the ULR domestic claims team. The company said, where possible, affected staff would be found alternative roles within the

RAC but it "cannot rule out compulsory redundancies".

New RAC Legal Services' personal injury cases were also outsourced from 1 July 2006. RAC personal injury work is currently handled by an internal practice team of 40 staff. Again staff will be offered alternative employment within the RAC if possible, though many may face redundancy.