Will repay staff deducted earnings this month
Osborne Clarke has ended its firm-wide salary cut months early and will repay staff their deducted earnings after its financials continue to hold up against the effects of the coronavirus pandemic.
The firm had taken the “unfortunate but prudent decision” to cut staff pay by 7% for a 11-month period starting in June 2020. The pay reduction applied to employees earning more than £30,000, although the firm said that if it met its new financial target for 2020-21, it would repay employees back.
In December 2020, the firm paid back deducted earnings to staff for the period of June to the end of October 2020, along with an additional bonus, after performance exceeded expectations in the first half of the financial year.
The pay reduction was reviewed again in the third quarter of the financial year, and following strong results, the firm confirmed the 7% pay reduction, due to remain in force until May 2021, would cease, with staff earnings for November through to January reimbursed as part of their February pay packets. From February onwards salaries will return to normal.
A spokesperson for Osborne Clarke said: “Our people have supported our business and our clients through an extremely challenging period. Their dedication has driven our performance and we would like to thank them for their ongoing support.”
They added that a decision is due this week regarding partner drawings, which had been put on hold until staff salary reductions are fully repaid.
Elsewhere in the City, a number of firms, including members of the magic circle, have begun to thaw their COVID-19 pay freezes of last year.