Allen & Overy is offering its Luxembourg people a generous parental leave package as law firms spend more time considering how to make their workplaces a positive space for those with familial responsibilities. 

The firm has decided to offer Luxembourg lawyers and support staff who take parental leave additional financial compensation on top of the country's statutory government allowance. 

Under the new policy, those who have spent at least three years at firm and make €6,000 a month or lower will be able to retain at least 85% percent of their monthly salary while staying at home with their children. 

Those who make more than €6,000 per month will be paid out at least 75% of their monthly salary, with both levels of compensation offered for a maximum period of four months in case of full-time leave, and a maximum period of eight months for lawyers taking a part-time career break. "Assuming that cost will I hope demonstrate that we take this seriously and that [we] want to actively promote parental leave," said Patrick Mischo, Allen & Overy Luxembourg office senior partner.

"We feel it's important for parents to be able to take parental leave, whether they are men or women," he added. The new policy, which came into effect earlier this year, aims to redress a persistent gender imbalance in who takes career breaks for childcare, Mischo said.

He added that historically in the legal sector and other companies, women have been more likely to take career breaks to look after children, which can impact on their progression in a gender imbalanced way. But if every lawyer with small children at the firm takes time off, that imbalance disappears, he said. "Then there's a full level playing field. Because in terms of professional experience, everyone is in exactly the same boat."

When the issue was discussed internally, Mischo said that the financial impact was a major reason keeping many lawyers with young children from taking time off.

"That's the reason we decided to top up what you get from the government," he added. "So that it's financially more attractive." Under Luxembourg law, working parents with children younger than six can take up to six months off work and receive a replacement income from the government during this time. The allowance depends on number of hours worked per week and income earned, but for those working full-time it ranges from €2,200 to €3,700 for full-time leaves.

Given that senior associates at major firms in the Grand Duchy can expect to take home monthly salaries ranging between €7,500 to €12,000, that means a steep drop in income for most lawyers.

The firm also hopes the move will help them attract and retain talent. In Luxembourg, as in many jurisdictions around the world, work is booming and talent scarce. 

"Feeling allowed to take time off to be with your newborns without your career suffering from it, obviously, that can be something very attractive in terms of recruiting and retaining talent," Mischo added.

A&O's offering is generous compared to some other firms in the region. Several Luxembourg law firms told Law.com International that they do not offer anything more than the country's statutory requirements.