Sometimes doing what is normal is abnormal, especially so in the days of the coronavirus on the loose.
Trilegal has internally announced ordinary annual increments in pay to fee-earners, in contrast to many other big firms such as Lakshmikumaran & Sridharan (LKS) that has frozen fee-earner salaries, while in some cases many have also implemented across the board cuts.
At most law firms during non-Covid-19-days, associates and fee-earners automatically advance to the next level of post-qualification experience (PQE) every year, and their salary also therefore increases automatically every year.
At Trilegal, the announcement of increments is made every year in July, with retrospective effect from 1 April that year, and so it was this year (and in May, Trilegal had also paid out bonuses, though at lower than usual levels).
We have reached out to Trilegal for comment. Co-managing partner Sridhar Gorthi confirmed: “We have implemented increments across all levels of lawyers and staff in accordance with past practice.
“Our people have worked hard through very challenging times and the firm is committed to doing the best it can for them. We are closely monitoring the ongoing impact of the pandemic on our practice and will respond to situations as they unfold.
“At this stage we believe this step was in the best interests of our firm and our people.”
Business not usual, of course
Fearing an economic crisis and future even harder hits on cashflows, a lot of firms have been battening down the hatches.
At Lakshmikumaran & Sridharan (LKS), for instance, all fee-earners were recently told that bonuses and increments have been deferred until next year.
We reached out to the firm for comment but have received no response.
Meanwhile, Cyril Amarchand Mangaldas has deferred fresher starting dates to 2021 and deferred fee-earner salaries (which we would strongly assume also means no increments but please correct us if we’re wrong).
Similar deferral measures also at L&L Partners’ litigation partnership, while at Shardul Amarchand Mangaldas the variable salary component was deferred.
Comments
Law firms thrive on chaos, uncertainty and ambiguity. The more clearly that the law is spelled out, the lesser is the work for lawyers. Similarly, in a stable environment work is limited (with the exception of M&A). But desperate times call for desperate measures and this has lead to tremendous demand in areas such as insolvency, debt (restructuring), M&A (attractive valuations for investors, conglomerates compelled to sell/ hive off businesses for reducing debt), employment.
Litigation has been hit. They cannot bill for the idle time wasted in courts while waiting for matters to come up. Also, there is limited scope for adjournment.
Capital markets has suffered but has been recently been busy with rights funding.
Those unlucky to have limited workload are compelled to write articles and conduct webinars!
Where is peace?
On top of that these greedy partners are now refusing to promote people or give increments (some are even shamelessly holding back the bonuses of last year). How is this fair? Will this ultimately result in people switching law firms (which gets them the increment)
Trilegal has significant $ inflows. Others deal with [...] who want super discounted rates and on top of that want the invoice to be FURTHER slashed into half!
Luthra and other tier 2 have Indian [businesses] on their balance-sheet. And therefore no increments or bonuses buddy.
Difficult times for Luthra and other tier 2 firms
Bad times ahead for Luthra and other tier 2 firms.
Rest all have $ Trilegal, AZB, Khaitan, SAM, CAM (it's a scam), Platinum, S&R
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If the situation does not get better by December, the higher echelons would be staring at a zero income year
Lit guys who had just begun their careers must be facing depressing times
Dont pay bonus and increments. All the money is put in FD and interest is earned.
I have a better idea. Rather than giving salary each attorney should Be given food packets comprising of idli, rasam and chutney and may be a cigarette or rajnigandha packet. Three times a day! Problem solved. Stomach is full. Get back to work ‘work from barsaati mode’!
What is this Anna? Feed them knowledge not food.
i clarify. The idli, sambar, cigarette and rajnigandha will also be factored. If target not achieved, only half idli with half katori sambar. Cigarette will be factored to choti ‘gold flake’ and rajnigandha will be replaced with Sweety Supari.
Bholu lal will replace chutney with Burada powder later.
Chutney will be sold to buy property in Chennai.
Hey- pls tell me if Luthra (oops now L&L) pays, patiently waiting since June.
Guess Luthra has paid the first tranche only.
The JP told the Partner that he has resigned by himself. Made a story that he went to his place personally to convince him to stay.
The litigation team (incl. Partner) reports directly to the Managing Partner. He always encourages and supports his juniors. So where is the question of protection.
The team comprises of capable professionals who are working hard. There are other JPs in the team and a number of PAs and SAs. They don’t need protection from anybody.
Credit for targets goes to the entire team who have worked hard. How can one JP claim all the credit? There are other JPs in the team who are meeting the target but not claiming any credit for it.
If you want to pose as a independent commenter, atleast give better arguments.
Demanding due sharing of credit is not insecurity. It may be so according to you. Team reporting to Managing Partner is as per his directions. Not for the reason as wrongly stated by you.
Try a better story
creates the organisation & if there is general resentment the organisation will suffer in the long run