MUMBAI: As the Covid-19 blockade expands again, law firms and attorneys, who have been more in webinars for the past month than in court because of the restrictions, prepare to feel the financial crisis and pay cuts too. While no law firm has yet announced job cuts, some law firms have not announced salary cuts and have only deferred variable wages, while others admit salary cuts.
Leading law firm Shardul Amarchand Mangaldas (SAM) and Co) stated Friday that "there will be no cut in fixed monthly withholding," but there will be no increase either. It would be what it was last year and the variable payment for last year will be paid "as usual" but for 20-21, where attorneys are eligible for variable compensation, the firm's performance will be taken into account and " paid in equal installments, "in March 2021 and the first half of 2021-22.
Another leading law firm, Cyril Amarchand Mangaldas (CAM) has decided against any job cuts and salary cuts for those associates earning up to Rs 25 lakh, but pushed a portion of the fixed salary to a variable salary, ranging from 10 to 30 percent, depending on the level of the lawyer, less shift for associates and more for salaried partners.
But, significantly, Equity Partners at CAM, like Cyril Shroff, voluntarily decided not to draw any salary for this financial year.
Several other companies, including Federal and Co, Trilegal and Parinam Law, also say there will be no pay cuts. But Parinam's founding partner Hitesh Jain said the variable payment would be deferred, "since liquidity could be a concern and should be maintained for the next six months." He also said his company is also not cutting jobs.
But all pre-placement legal jobs are in trouble with many law firms that have yet to confirm them.
Trilegal managing partner Sridhar Gorthi told TOI: "We are not deferring or delaying annual performance-based payments and promotions." They were to be announced and paid on Friday, May 1, business day. "Retainers' monthly payments should be reviewed in July and no decision has been made at this time," he added.
Murtaza Federal, the managing partner of Federal, told TO that the company had not yet announced salary cuts or deferred payments.
ALMT founding partner Sameer Tapia said sincerely, "There will be some pay cuts, but they will vary and depend on the rank and stage of the person." "The next few months after the blockade ends will be crucial to navigate the litigation scenario and may have to evolve as well," he said.
"As we navigate these difficult times, our focus remains on the well-being of our people, ensuring the Firm's business, sound financial management and providing the greatest possible certainty to our shareholders," said a SAM statement.
"Any adverse impact of the Firm's performance would be largely supported and absorbed by the Firm's capital company. Although we are aware of the unprecedented and difficult moment that the Firm, the country and the world are going through, we have assumed the interests of all in mind as we prepare for a challenging time, with prudence and vigilance, "the company statement said.
While some large law firms have declared a "great start to this financial year with significant deals, even in the current climate," caution is the key word in the industry and the legal profession is not throwing it into the winds either.
Leading law firm Shardul Amarchand Mangaldas (SAM) and Co) stated Friday that "there will be no cut in fixed monthly withholding," but there will be no increase either. It would be what it was last year and the variable payment for last year will be paid "as usual" but for 20-21, where attorneys are eligible for variable compensation, the firm's performance will be taken into account and " paid in equal installments, "in March 2021 and the first half of 2021-22.
Another leading law firm, Cyril Amarchand Mangaldas (CAM) has decided against any job cuts and salary cuts for those associates earning up to Rs 25 lakh, but pushed a portion of the fixed salary to a variable salary, ranging from 10 to 30 percent, depending on the level of the lawyer, less shift for associates and more for salaried partners.
But, significantly, Equity Partners at CAM, like Cyril Shroff, voluntarily decided not to draw any salary for this financial year.
Several other companies, including Federal and Co, Trilegal and Parinam Law, also say there will be no pay cuts. But Parinam's founding partner Hitesh Jain said the variable payment would be deferred, "since liquidity could be a concern and should be maintained for the next six months." He also said his company is also not cutting jobs.
But all pre-placement legal jobs are in trouble with many law firms that have yet to confirm them.
Trilegal managing partner Sridhar Gorthi told TOI: "We are not deferring or delaying annual performance-based payments and promotions." They were to be announced and paid on Friday, May 1, business day. "Retainers' monthly payments should be reviewed in July and no decision has been made at this time," he added.
Murtaza Federal, the managing partner of Federal, told TO that the company had not yet announced salary cuts or deferred payments.
ALMT founding partner Sameer Tapia said sincerely, "There will be some pay cuts, but they will vary and depend on the rank and stage of the person." "The next few months after the blockade ends will be crucial to navigate the litigation scenario and may have to evolve as well," he said.
"As we navigate these difficult times, our focus remains on the well-being of our people, ensuring the Firm's business, sound financial management and providing the greatest possible certainty to our shareholders," said a SAM statement.
"Any adverse impact of the Firm's performance would be largely supported and absorbed by the Firm's capital company. Although we are aware of the unprecedented and difficult moment that the Firm, the country and the world are going through, we have assumed the interests of all in mind as we prepare for a challenging time, with prudence and vigilance, "the company statement said.
While some large law firms have declared a "great start to this financial year with significant deals, even in the current climate," caution is the key word in the industry and the legal profession is not throwing it into the winds either.
-
to download
The times of India News app for the last City News
-
Subscribe
Start your daily mornings with the Times of India newspaper! Order now
.