ICICI Bank’s in-house department, which hired 24 campus graduates this year, has increased the salary package of new joiners to Rs 9.05 lakhs per year. This figure includes all benefits that employees receive but lawyers can choose to be paid the amount in full on a retainer basis after six months with the company.
The new starting salary was a figure that was the “cost-to-company” and included loans, assistance with housing, pensions and other benefits, explained ICICIgeneral counsel Pramod Rao.
“They have an option about six months later to move to being exclusive retainers in which case their package becomes completely payable in cash subject to deduction of applicable taxes,” said Rao.
The previous ICICI package was betwen Rs 8.35 and 8.8 lakh according to Legally India’s starting salary survey.
In-house lawyers traditionally suspend their Bar Council membership and take up employment with companies and members of the ICICI’s in-house department which is called “corporate legal group” get similar benefits to the bank’s other employees.
By contrast, most law firm lawyers are employed on a retainer basis by law firms, which means that they can handle their own tax affairs and which could result in higher pay.
Rao said that the retainer option was introduced around three years ago and that the take-up by lawyers had been around 30 per cent within the corporate legal group.
Lawyers under the scheme have a one-time option during their career to opt back to being an ICICI employee.
It is understood that one advantage of being an employee is that senior employee lawyers can be eligible to be granted ESOPs (employee share option schemes) in ICICI.
The revised retainer remuneration of Rs 9.05 lakhs would put ICICI just ahead of Luthra & Luthra’s starting remuneration and only slightly less than firms such as Amarchand Mangaldas and AZB & Partners, according to Legally India’s salary survey.
It is understood that Luthra & Luthra has budgeted for an increase of its base salaries from Rs 9 lakh per annum, although this is still to be finalised and announced.
Rao also added that ICICI corporate legal group had recruited around 24 students from law schools this year, all of whom are now working at the bank. The new salary also applies to the new joiners although they were originally recruited on the basis of the lower salary.
| 2010 Indian legal recruiters’ basic starting salary, excl. performance-related pay unless indicated |
|---|
| Firm |
| AZB & Partners (Mumbai) |
| S&R Associates |
| Trilegal |
| AZB & Partners (Delhi) |
| Amarchand Mangaldas |
| J Sagar Associates (JSA) |
| ICICI Bank |
| Luthra & Luthra |
| Wadia Ghandy |
| Talwar Thakore |
| Khaitan & Co |
| Desai & Diwanji |
| Nishith Desai Associates (NDA) |
| SAIL |
| Phoenix Legal |
| IFMR |
| Juriscorp |
| Pangea3 |
| Lakshmikumaran Sridharan |
| Crawford Bayley |
| Kochhar & Co |
| Supreme Court judicial clerkships |
Source Legally India *CTC: “cost to company” figure can include other benefits than just base salary.
Comments
So, does this mean that these graduates (working at law firms/ICICI/and any other corporate houses offering the retainer option) do not have to suspend their enrollments with the state bar councils? This was not what was said before on these forums sometime back when this discussion came up. I believe the opinion then was that law firms recruited new graduates as 'employees' who later had the option of becoming part-owners if the law firm opened up for partnership. The retainer statement above makes it seem like the law firm lawyers work more on a 'contract' basis than an employee basis. This is a good thing as it will allow the lawyers to maintain their name on state rolls. But, I want to be sure that it is indeed the case.
Kian, can you please clarify.
anybody?
Well in so far as I know most law firms leaving Nisith Desai have the retainer model. The report is perfectly correct in stating that lawyers engaged on retainer basis do not need to suspend their Bar Council Memberships and are well entitled to appear before Court and Tribunals.
Well you can have good payments for lawyers in India even without calling in the foreign firms. You may note that I do not oppose the entry of foreign firms rather support the same on different grounds - (i) convenience for Indian multinationals (ii) availability of wider skills and experience.
Lawyers fees will depend upon the socio-economic standards of the society and in particular the business community. Secondly, regulation for law firms may help ensure decent pay outs to lawyers engaged by such firms. Thirdly, strict enforcement of law will drive more and more people and businesses to seek legal advice prior to entering into transactions as well as for documentation. All these can be achieved without the entry of foreign firms. Do think over the issue - the cause and solution. It is purely a national issue and has much to do with the society and internal regulations.
Payscales in UK firms are much more fairer than in India. UK firms also do not treat associates as slaves and the seniors are more friendly. There are allegations of an "invisible bias" against Indians in UK firms because they are not OFTEN made partners but this is a little misleading. Firstly, Indians who are UK citizens do not usually face this problem and I think it is fair if a country discriminates in favour of its citizens. Secondly, the British upper class also discriminates against whites from lower-middle class or lower class backgrounds. This is not a racial issue but a cultural issue, Also, how many Indians make an effort to integrate in the West?
Please study or work in the West before accusing Westerners of racism based on skewed news reports about so-called "racist" attacks against Indians in Australia.
I would advise all young lawyers working on retainer to consider their tax treatment seriously and avoid trouble with the authorities at a later stage when stakes will be higher. BTW what irritates me is that the law firm employers know fully well about the risks but do not advise the young people correctly. In any other global organisation, one of the big fours would have done a proper tax memo and Do's and Donts for all new joiners (at the employers cost)
load of c**p. however 15 lakhs packages could become frequent if the legal sector is liberalised. balaji's case goes to the SC next week so it should be interesting
I am also amazed at how ICICI is doing this 'retainership' initiative because from what I know, these "retainers" are no different from employees except in nomenclature. The BCI should investigate how this practice is being propounded as it looks like blatant flouting of the Advocates Act - lawyers working full time for a corporate and exercising all powers of employees but being allowed to enrol and hold a sanad.