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International firm cuts associates’ salary by 20%, adjusts partner profits
Another major law firm with an Australian presence has put in place measures to manage the economic impacts of the global coronavirus pandemic.
Jerome Doraisamy
Late last week, international law firm Squire Patton Boggs – which has Australian offices in Darwin, Perth and Sydney – announced measures “across the global firm” to guarantee its viability moving forward and prevent long-term job losses in the wake of COVID-19.
Elsewhere, Squires associates will see their salaries reduce by 20 per cent, in accordance with local legislative requirements. The firm’s existing bonus program, however, will not be affected by the salary reductions.
The firm’s support staff will have their salaries reduced by 10 to 20 per cent, with higher-earning staff taking a greater hit. Some support staff are also being furloughed, if those staff are “currently underutilised or not able to perform their job remotely”.
Additionally, Squires’ US-based summer associate program will not be held in 2020. Instead, the firm has said it will provide individuals with offers for future employment, as well as a stipend in lieu of the nine-week program salary.
New US associates set to join the firm in September will see a deferred start date of January 2021, and at this time, the firm expects its UK trainees to start in August as scheduled.
“The global pandemic has created distress for companies around the world and will continue to for some time,” the firm said.
“As responsible stewards of the firm and consistent with measures taken by other law firms, it is necessary to take prudent steps to assure the firm’s success and prevent job loss over the long-term.”
The news follows reporting by Lawyers Weekly on the measures taken by over two dozen law firms. The full list of stories published can be found here.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
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