UK Firm Latest to Defer Partner Distributions, Avoids Furloughing Employees
The firm has said that all reductions will be paid back in due course.
April 28, 2020 at 08:23 AM
3 minute read
RPC's London office
U.K. firm RPC has become the latest firm to impose a swathe of financial measures to secure the fiscal health of the firm amid disruption wrought by the COVID-19 pandemic.
All partner distributions have been delayed until further notice, the firm announced in a statement. The firm will also apply a "sliding scale" reduction to monthly drawings of up to 20% for all partners.
The firm has also stated that all business services directors have volunteered to take a cut in their salaries until further notice.
According to a spokesperson for RPC, all reductions to salaries – both for partners and business services directors – will be treated as deferrals, and it's the firm's intention to pay back the difference in due course.
In a statement, RPC managing partner James Miller, said: "We need to remain prudent in the best interests of our people, the best interests of our clients, and the best interests of the firm to ensure we continue delivering the highest levels of service for years to come."
"Although no firm wants to take such steps, it is the right thing to do for the business. It's the right thing to do for our people, too; our focus is very much on ensuring that we can preserve jobs and avoid having to take any more drastic measures further down the line."
Elsewhere, the firm also stated that bonuses and salary reviews have been deferred until November 2020, and that non-essential recruitment has been paused.
Partner promotions, trainee qualifications will go ahead as normal, a spokesperson added.
RPC has not placed any employees on the government furlough scheme, but acknowledged that some of its third-party suppliers have furloughed some staff unable to work during the lockdown.
"As valuable members of the RPC family we will be topping up their salaries to 100% if below the government's furlough cap or to the higher of 80% of salary or the cap if they are over," the RPC spokesperson added.
Many of the U.K.'s top law firms have taken similar measures in response to the pandemic. Most recently, CMS announced that it was deferring partner distributions and had made redundancies in its Madrid office.
Read more:
Mishcon, Pinsents Float Reduced Week for Lawyers as CMS, HSF Take Action In Spain
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