UK Firm Asks Some Partners to Work Fewer Hours on Reduced Salaries
The firm is the latest to introduce reduced hours and salaries in response to the pandemic.
May 01, 2020 at 08:55 AM
3 minute read
DAC Beachcroft managing partner, David Pollitt
U.K. law firm DAC Beachcroft has announced that some of its lawyers, including partners, whose work levels have been affected by the pandemic have been asked temporarily to reduce their working hours and pay by 20%.
DACB has also introduced a swathe of other measures including suspending partner profit distributions, paying out bonuses in two installments, and deferring salary reviews to later in the year.
It is the latest firm to announce measures such as reduced hours to help navigate the pressures of the COVID-19 disruption, but DACB stands out as it is one of the only ones to say the move will also impact partners.
The firm confirmed it had also furloughed some legal support staff and paralegals but that it would be topping up salaries to 100%. It declined to comment on how many.
In addition, DACB has also asked staff to take two-thirds of their full-year holiday allowance by the end of September. It has also laid out flexible working arrangements for staff wishing to voluntarily reduce their hours such as through unpaid leave and sabbaticals.
In a statement, DACB managing partner David Pollitt, commented: "We have taken our time to assess the potential likely impacts on our business and we are now in a position to make informed decisions. Our objectives remain threefold: to look after our people, to continue to serve our clients well, and to protect our business.
Pollitt added: "Some parts of our business are facing increased demand for our services; however, there are other parts where our clients are facing severe challenges and their demand for legal services has or will be reduced in the short term.
"In those areas, we need to take action to ensure the continued sustainability of our business."
Other firms have also moved to reduce hours and pay in light of the COVID-19 pandemic including Pinsent Masons, Ashurst, Norton Rose Fulbright and Dentons.
Ashurst and Simmons & Simmons also announced that they would be postponing their annual partner promotions round in light of the virus.
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