Hogan Lovells Furloughs European Staff, Freezes Recruitment, Defers Partner Profits
The firm is furloughing fewer than 30 members of staff in Europe.
April 16, 2020 at 10:13 AM
3 minute read
Hogan Lovells is implementing changes due to the coronavirus.
Hogan Lovells has taken precautions against financial knock-on effects by COVID-19, including furloughing staff across its European offices, deferring partner profits and freezing all recruitment.
The firm said in a statement on Thursday that staff across its Belgium, France, Luxembourg and U.K. bases will be placed on government furlough schemes.
In the U.K., the firm is furloughing fewer than 30 members of business services staff, including some PAs, receptionists and events staff. The firm is topping the U.K. government's 80% salary provision up by 20%, according to a person at the firm.
It halted recruitment across the firm in March, according to the statement, and it is also deferring bonuses and profit distributions for non-equity and equity partners at the firm.
Salary reviews and discretionary bonus payments for lawyers across its U.K. and Asia Pacific offices have also been postponed, the statement added. Associate reviews in the Americas, Continental Europe, and Africa offices are unaffected as they took place at the end of 2019, according to the statement.
Meanwhile, salary reviews and discretionary bonus payments for the "significant majority" of business services teams worldwide are also being postponed and will be reassessed later in the year, the statement by the firm added.
The firm's U.S. summer associate program, due to start in May, will now commence later in the year and is being shortened from ten weeks to four weeks. It will be delivered virtually if necessary, according to the statement.
It is also delaying when its U.S. first-year associates join the firm due to the U.S. bar exams having been moved to the autumn.
Steve Immelt, CEO of Hogan Lovells, said in a statement: "Overall, we intend to take a careful, step-by-step, approach using the underlying principles of fairness and shared burden, including by partners, to guide us.
"Historically, we have made certain compensation decisions with an effective date of May 1 as well starting our summer student programs. Given the uncertainties, we are putting them on hold until we know more.
"Protecting our business while taking care of our people will be at the heart of our decision-making and we will continue to monitor the situation intensively and think creatively to ensure that we have the necessary capabilities to meet our clients' needs both today and in the future."
Hogan Lovells is the latest of firms taking steps to counter the possible financial setbacks stemming from the outbreak. Recently, firms such as Norton Rose Fulbright and Ashurst also took preemptive measures such as implementing a four-day week for less compensation.
Read more:
A Firm-By-Firm Guide on Pandemic Measures
Ashurst Cuts Staff Working Week, Reduces Partner Drawings, Furloughing Staff
Reed Smith Defers Bonuses As Withers, Weightmans Furlough Staff
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