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Multinational firm pauses salary reviews, defers partner profits
A “Magic Circle” law firm with an Australian presence has put a hold on salary reviews and increases and will defer partner profit distributions as it responds to COVID-19.
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A spokesperson for Clifford Chance has confirmed that the multinational firm has put a hold on salary reviews and increases for everyone in the firm and that partner profit distributions are being deferred.
The firm is still paying bonuses “for the excellent work undertaken by teams during this financial year”, the spokesperson continued, however a portion of those bonuses will not be paid until November.
Clifford Chance also confirmed that “one of its priorities is to seek to protect jobs and existing salaries”.
“We currently have no plans for COVID-19-related redundancies, salary reductions or enforced changes to people’s working arrangements,” the spokesperson said.
The spokesperson said that the firm is a “strong and resilient organisation”, with over five years of robust global growth behind it.
"Our teams are always a source of huge pride, they are fantastically talented, motivated and collaborative, and never more so since the virus has begun to spread. Over the coming months our aim is to keep these teams together and to work shoulder to shoulder with our clients who need our support now more than ever,” the spokesperson concluded.
The news follows reports from this week that HopgoodGanim Lawyers is cutting salaries for staff earning more than $65,000 by 20 per cent, and that directors and senior executives for plaintiff firm Slater and Gordon will see their pay reduced by 10-15 per cent.
Earlier on Wednesday, Lawyers Weekly reported that national firm Sparke Helmore has cancelled pay rises for this year for partners and employees.
Lawyers Weekly has also reported on the measures taken by dozens of law firms in the wake of the pandemic. Those reports can be found here.
Jerome Doraisamy is the managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.
You can email Jerome at: