Berwin Leighton Paisner's (BLP's) managed legal services division has secured a second deal that has seen IT company Colt transfer its employment law team to the City law firm.

The multimillion-pound agreement has seen the telecoms and IT provider turn to BLP to conduct all of its employment legal matters across the 13 European jurisdictions in which Colt operates.

Colt's sole in-house lawyer dealing with employment matters has been transferred to the division and will be assisted by a lawyer from BLP's locum lawyer service, Lawyers on Demand.

The deal was agreed by BLP corporate head John Bennett – who oversees the managed legal services division – and Colt general counsel Robin Saphra. The agreement will run for five years with a three-year break clause. If successful, it could see the company hand over more in-house legal functions to the division in future.

The move comes after BLP earlier this year sealed a groundbreaking deal with Thames Water to transfer the bulk of its in-house legal team to the newly-created division.

The agreement, understood to be worth £5m a year to BLP for the next five years, saw the firm take on 13 of Thames Water's in-house legal team and three administrative staff to carry out all of its longstanding client's legal work.

Bennett (pictured) commented: "This deal is interesting because we always said Thames Water was a concept that could be applied in different ways. This work is for a particular area of practice across a number of jurisdictions applying the same concepts we have previously developed to achieve different benefits – so an interesting application for our managed legal services division."