Clifford Chance (CC) is facing an employment dispute in Germany as two former salaried partners accuse the firm of unfair dismissal related to its recent partnership restructuring.

The former partners left the magic circle law firm's Duesseldorf arm as part of its partnership restructuring, which was launched this spring. The duo have filed claims for unfair dismissal in the local labour courts claiming that, as non-equity partners, they were employees rather than shareholders, which would grant them additional protection under local law.

CC told Legal Week it will contest the claims, which were first reported on the website RollOnFriday.

The firm also issued a statement: "The claim relates to two of our German salaried partners who were asked to leave the firm as a result of our partnership restructure. We believe the case to have no merit whatsoever and will be defending our position accordingly."

CC declined to say if any other claims have been filed against the firm, but did confirm that the two were not the only salaried partners that left in Germany as a result of the restructuring.

According to Legal Week research, CC's continental European partnership shrunk by 12 partners between March and July this year. The global partnership had diminished by 50, out of which a majority had left the firm's City headquarters and the New York office. The figures did not cover Asia and the Middle East.

CC has previously indicated that the restructuring will result in its partnership shrinking by 15% between April this year and next, equating to around 90 partners.

News of the dispute comes as it recently emerged that CC's City rival Allen & Overy is facing a similar claim from a German associate related to job cuts the made earlier this year.

Clifford Chance on the Legal Week Wiki