International firm cuts salaries and partner drawings for almost a year

Partners and staff at Osborne Clarke will take an 11-month pay cut as the firm continues to weather the impact of covid-19.

The international firm revealed that UK partners will be subject to a 10% cut in their monthly drawings from 1 June for almost a year, according to the Law Gazette. The firm has also made cuts of 7% to some staff’s pay, which will apply to all employees earning £30,000 FTE gross and above. Staff earning less than £30,000 after the cut will automatically have their salary set at this figure.

Several voluntary options were also offered to staff, including part-paid sabbatical, early retirement, reduced hours or a move to a job share.

All staff benefits will be retained (eg, firm pension contributions), which will be protected at their unadjusted salary.

If the firm meets its financial target for 2020/21 staff will have their salary reductions from the previous 11 months repaid.

A number of support staff at the firm have been placed on furlough and will remain so until at least the end of June. All external recruitment has also been frozen, the firm revealed.

Meanwhile, partners at the firm agreed to defer 75% of their special draws going forward and continue to make capital contributions that had been agreed before the global pandemic.

A spokesperson for the firm said: “While there are encouraging signs that the pandemic is abating in the UK and in some of our international markets, normal economic and business activity is expected to remain subdued at best throughout 2020, and possibly beyond.

“While we are in a relatively strong cash position, and introduced more stringent cost control a few months ago, the partnership has agreed that further measures are prudent.”