Shardul Amarchand Mangaldas (SAM) has instituted a novel HR policy: fee-earners who leave the firm within the next seven months will have to repay the firm three months’ of their retainer fees.
The changes were rolled out today (5 September) across the firm’s offices, communicated together with the individual pay hikes for the period from 1 September 2018 to 31 March 2019.
However, according to the agreements circulated to the fee-earners, including salaried partners, the “enhancement in retainership fees is conditional upon completion of a minimum of 7 months as a retainer with the Firm from September 1, 2018, failing which, three months retainer fee will be payable to the Firm within 30 days of resignation or on the agreed last working date”.
Let’s rephrase that in case it’s not clear: SAM fee-earners get a pay-hike, but if they leave before 1 April 2019, they have to pay SAM back three months’ of their pay.
We have reached out to SAM for comment on the reasoning behind this move.
Presumably, it is aimed at retaining lawyers by hitting their wallets if they move.
And sure, on the one hand, unofficially, quite a few big firms have been known to cause difficulties for leavers trying to collect promised bonuses or their last few months’ pay (so much so, that many departing partners give up on seeing such monies after a while; many others often simply pretend they are not joining a competing firm until their dues settled).
However, putting such policies down in writing could end up not even being legally enforceable. It’s also not likely to do wonders for morale or actually stop a lawyer who is determined to leave (even if it might raise the cost of doing so).
Update 6 September, 16:25: Citing unnamed “sources”, Bar & Bench has reported that SAM’s “huge […] increments range between 20% and 75%”, adding: “Sources within the firm say that SAM has introduced these changes with the intention of becoming a market leader in remuneration. They already have market-leading variable pay incentives, where Associates and Partners can earn up to 200% of their variable component. This has been in place for the last 3 years.”
Comments
Same stories for people in in-house or mid tier law firms. If they are good enough they will also equalise, and presumably have enough sense. The others will cry about sour grapes.
Fact is this is retrograde, and in a sense novel. Because it will also start a trend of other law firms trying to copy it
If you think the policy is retrograde, which it probably is, then quit. Stop complaining on LegallyIndia.
A step removed from if a government delivers 10% economic growth, they can suspend your fundamental rights
And your comparison is illogical to say the least. A million steps removed in fact. Nobody's fundamental rights are suspended. Govt. delivering 10% economic growth is the firm meeting its targets. Govt. paying its employees is what we are talking about here. But I understand your confusion given that you work in a firm.
But No tickee no laundry. If somebody wants to work in SAM and get paid lakhs then they have to agree to their conditions. It is the self-righteous indignation that I can't stand.
Targets have already ecplipsed them. And then there is the loading into the multi layered bonus.
So in short you are (ballpark) off by about a mile.
It's ethically a piece of shit move. But legally - may not be as black and white unlawful / voidable as one would think.
to start with.
SAM convincing it’s lawyers to sign because it’s unenforceable.
If just 10 associates refuse to sign they will take this back...
#bachgayebhaiya
Oh and romour has it that the last bonus payout will be quite some distance from March, so they will anyway have that hanging over you
Papa bear looks for the right “mahoorat” to implement the idea,
Jamai Raja tweets about the idea,
Beti bear follows the family around purposeless.
TIME FOR MASS EXODUS. Lets get out !!
Don't fill your timesheets as a sign of protest!
Instead of doing such acts, have the guts to see what is going wrong and y r people dissatisfied and improve things that have gone wrong.
This family thinks they have bought everyone by throwing money to them without realising that without these retainers there will be no money.. money is paid because they earn it for u..
This 'repaying salary' thing is a bad HR policy.
5/09/2018 - A Black Day in independent India's law firm history.
The law firm managing partner crowd in India is the most blinkered and self indulgent bunch of lawyers ever. Spend your time in law firms inly till it satisfies your needs.
This is a new low for SAM. HR at SAM is a SHAM!!!
It was a lot of money earlier also. It was just not so obvious
alteast luthra has a rajveen luthra who has a good heart despite other troublemakers
This is an excellent attempt at propaganda. Hope you’re well paid by SAM and your payments aren’t subject to retrospective claims based on future loyalty.
What about people not leaving to join another law firm? Litigators looking to go independent? People leaving to do masters? People leaving to teach? People leaving to start businesses or go in house? Who else is Smart SAM targeting, since its targeting everyone except its lawyers according to you?
This is all a reaction to a number of exits, and will just cause more exits, because management refuses to actually fix anything.
...
But seriously, while we are very happy about the 377 judgment and have written extensively about it in the past, we have taken a strategic decision to do mostly exclusive stories and not those that you'd have to have been hiding under a rock under to miss.
As for the stories that every single newspaper will be leading with on their frontpages and that will be shouted about all day in wall-to-wall TV coverage, we don't generally cover these unless there's some genuine value or novel viewpoint we can add with our coverage.
Get the arrears, get last month's retainer, take an experience letter before hand (under the garb of a possibile loan or tax matter requirement), then go to your partner and tell him or her that wish to quit. Don't agree to the notice period of more than 10-15 days as you wouldn't nget paid for that period. Stop going to office post 15 days and start a new job. Tell your new employer that you stood up for your rights. Most likely SAM will not sure you but will blacklist you. But if you don't have to go back to them, does it really matter. Over time (maybe in the next couple of years) they will realise their folly and welcome you back with open arms..
Senior non family equity partner will be thinking - "from where will I get Rs. 1.8 crores?"
hildul:haanji behenji
other firms: do darjan de do
...this is the last thing to do...unconscionable, to say the least!
Let this be a warning!
The Bush Crime Family was into narco trafficking, money laundering, illegal justification for the Gulf War (the infant incubator lie) and the weapons of mass destruction Iraq War (Colin Powell lying to the UN) and the Brown and Root and the Carlyle Group scams.
Attention President Trump! You have done well until now .... STAY AWAY from all members of the Bush Crime Family! There are enough good people out there! Stay away from all members of the:
Bush, Clinton and Obama Crime Family s
George Meredith MD
Virginia Beach
Everyone knows it. Please try and be less oblivious
trying to earn from their associates
obviously noone will reject payhike given witu these terms this will mean saying i intend to leave
this may be the worst move ever
luthrization of sam
The goodwill factor of the increments destroyed
Don’t blame Jamai Raja. He had nothing to do with it and was seen around the floor pacifying people and building morale.
Also th volume of comments suggest that a bus depot somewhere may be using its troll army to batter SAM!
Come back to handle situation on ground. Commenting on LI is not going to correct the deed!
Luv
Family
What a master stroke - SAM has demotivated all its associates and ensured that no associate will join from any other firm. A genius stroke from a genius mind.
Lawyers are grown up adults
They know their responsibilities. They need not be hammered like a ring matter
[img]https://media1.giphy.com/media/hMYHdcMGUHVlu/200.gif[/img]
Instance: Associate A quits before April 2019. SAM demands 3 months of salary back. Associate A (assuming is slightly smart) refuses to pay back the amount.
SAM sues Associate A for recovery of money? Weird.
Law firms should be able to sue their lawyers for breach of contract. It’s not unheard of. It’s been successfully done by Titus for confidential information.
On the Section 27 point, I feel there is a judgment by Justice Mohta of the Bombay High Court which could lend some credence in favour of the clawback, albeit heavily debatable.
What is strange is, what self respecting lawyer would cower and comply when the demand comes from SAM subsequent to quitting.
If lawyers cowtow and comply, great power play. But lawyers with the true adversarial spirit may not comply. In which case, worst precedent ever. Nobody will take a SAM contract seriously going forward.
What happened to the Amarchand - the mighty and the powerful?
One breaks privilege, the other comes up with a policy which reeks of Zugzwang.
P.S - I am sure this clawback policy was supposed to be confidential, but it clearly didn’t work that way. Minor insight into how much associates respect terms of the letter they were handed over. (Strictly confidential, I am sure)
Once the first month of notice period is done and SAM doesn't pay up, it would be rather strange if the lawyer chooses to continue for two additional months.
I am all for serving out notice periods, but firstly, three months is too much; and secondly, no service is for free, especially not from a lawyer (Money worshipers usually know what that means).
Insofar as relationships go, a law firm is not the place for it anycase.
Sorry, this does not sound like infallible leverage.
Its amazing that not one person in the entire decision making process could foresee the repercussions of this move. It reflects very poorly on everyone from the HR to the top management. A good move will be to come down from their high horse and withdraw this farcical clause. But of course, I am dreaming.
They have announced to the Clients and the world generally how desperate they are. Be that as it may, the folks here haven't left the organisation but the bosses.
It's so easy to spot the teams driving the attrition but then again, it's the folks at the helm of those teams who run the show. So, through this stupid move, they have also caught the nice diligent handful folks completely off guard.I was showing loyalty and working hard and then I got whipped. I feel sorry for those. I truly do.
It's like after these mad bulls were done ruining lives of their own teams, they meditated on other medieval methods of destruction and found a perfect solution.
Last few months at SAM, "How daft can you be to overlook a snake on your desk?"
Today in SAM, "Call a seige to trap the snake."
As mentioned in my earlier comment, those who wish to leave will still do by simply following the process mentioned therein.
The new joiners will now negotiate over the above 'base price'. If I were to go back to SAM and at a PA level now the offer made was 70. I would add 3months fixed fee to it at the time of negotiating my numbers. Its very clear that they are desperate to hire so if I know that I am good and they are interested (which i know they are going by the mediocre candidates they have interviewed off late), they will budget. So the new joinees will benefit. Just keep the three month 'additional' amount you negotiated in in a FD and give back the principal at the time you leave. You may still follow the approach mentioned in my earlier comment and give them a double blow.
It is also an eyewash, as most of the increase is made in the bonus components. Ask HR how many individuals (not teams) met their 2.75x or 3x as it will now be. Answer is less than 5%. Not meeting targets is not a resources fault, one team member gets staffed on dollar billing matter and other on fixed fee. It seems not difficult to assume which one will meet target. Will become all the .ore difficult for litigation, competition law and tax teams. Net net the number of people meeting the now inflated targets (as a result of jump in bonus) would fall further and SAM will never have to actually pay the bait. It was supposed to be eye wash but they were hoping that it would give them an image of market leader, am afraid their existing image got a beating because of this. Good I left just in time.
Is this the modern day "3 gunaa lagaan"?? 6th September 2018 will henceforth be associated with 2 extreme emotions in the Indian legal landscape - (1) the elation at India growing up with the exceptional verdict in the Article 377 case, (2) the disgust at the introduction of blatant economic slavery by the "fantastic" minds at SAM. One one hand, the Supreme Court threw away a colonial era baggage, while on the other hand, the "fantastic minds" at SAM have re-introduced East India Company style economic exploitation!
If "the fantastic minds" at SAM feel that they since they have the coffer size to offer big pay packets and hence can economically own their employees, i have just 2 statements at their mentality and morality - Such a shame, and such a sham!
A company (or, a firm as it is called in the legal fraternity), is only as good as its employees. While the employee-centric HR policies in India has been having its constant decline - with employees being called "resources", managers referring to their colleagues as "heads", etc., this policy by the "fantastic minds" at SAM, though, takes the cake in being the single most shameful act in the HR landscape across all fraternities in India.
Its high time the HR policies in India is brought under some order, either through the collective pressure exerted by the employees across fraternities, or through a self-realization by the HR partners themselves (which seems to be tough task!). Else, we employees are staring at a bleak future - one that will take us back to the economic violation of the pre-1947 era!
(P.S : Please excuse my language. I do not belong to the legal fraternity and hence do not use "legal" terminologies. However, my opinions emanate from the point of view of a concerned fellow employee)
Delhi office being close to himachal does have its benefits.
No increment if you don’t sign.
No soup for you.
10% > 40% > 200% >3x < 3 months
Jumla
Reaction of SAM lawyer on hearing claw back.
Only a clarificatory Mail. Silent on the real issue. Doesn’t address the concerns.
Similar to RBI giving clarifications on Notebandi.
BTW On a separate note is seems like a certain law firm has hired trolls to go after SAM. My hunch.
Big thank you for being here.
#Azadi
Then came introduction of designates.
Followed it up with breaking the bonus because of split and pocketing all our money for that year.
All people supposedly earmarked for highest level left the firm in last 2 years and this is what you do. SAM - please have some sense or let someone who has take the calls. Enough damage has been done.
Can't believe OA s journey to saket led to such a knee jerk reaction.