Money

Taylor Wessing has enacted new financial measures across its U.K. business in the face of growing disruption caused by the COVID-19 pandemic. 

The firm has announced that it is withholding partner profit distributions, furloughing staff members and pausing all live recruitment processes across its U.K. limited liability partnership as the industry grapples with disruption.

A spokesperson for the firm said in a statement that the firm had furloughed some members of staff "whose roles have been impacted by the move to remote working" but also stated that the partnership would be topping up salaries to 90-100% on top of the 80% guaranteed by the U.K. government's furloughing scheme.

The firm's bonus schedule has not been affected by the measures, according to a person at the firm.

The firm has also called on all its staff to take any pre-booked time off as well as asking everyone to take two thirds of their annual holiday leave before the end of August.

The firm said in a statement that the action was necessary in order to ensure annual leave is spread across the course of the year and support client demands. The statement added that this measure was in place in order to: "avoid disappointing on holiday requests towards the end of the calendar year because we don't have capacity for everyone to take the same period off."

Taylor Wessing managing partner Shane Gleghorn said in a statement: "Each of these measures is being taken with a view to the long-term preservation of jobs and sustainability of the business. Each decision is difficult to make, but all are being made because they will best serve our firm during this challenging period. We have been deeply impressed by the way people have responded to these decisions."

The firm follows several in making attempts to financially shore up its business, as the industry is hit by the implications of the COVID-19 crisis.

U.K. firm Pinsent Masons furloughed some non-fee-earning staff as well as deferring partner profit distributions on Tuesday, while Freshfields Bruckhaus Deringer confirmed on Monday it has suspended profit distributions.  A&O asked partners to contribute capital to the business and is gradually reducing its partner profit distributions.

Cadwalader Wickersham & Taft, Reed Smith and Norton Rose Fulbright have all said they will be taking steps including lowering or deferring partner pay outs.

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