Trowers & Hamlins has frozen pay for associates and business services staff as a result of uncertainty in the wake of Britain’s decision to leave the EU.
Staff and fee-earners were informed of the decision at the end of last month in an email from senior partner Jennie Gubbins.
It is understood that equity partners’ drawings and bonuses will go ahead as normal, while salaried partners received their annual pay rises in March this year.
Gubbins revealed pay reviews for everyone else had been put back for a second time following the Brexit vote and a final decision on when reviews would take place will be made at a management board meeting on 15 September.
Trowers saw a dramatic turnaround in its Middle East and Asia fortunes in the last financial year, with its non-UK financial results showing profit climbed by 1800 per cent to £1.9m. The growth signalled the firm’s international practice bouncing back from a devastating decline in 2014/15 when profit dropped 96 per cent from £1.25m to £100,000.
Trowers is the latest firm to freeze pay as a result of Brexit uncertainty. Addleshaw Goddard postponed pay reviews for all classes of partner and associates this month, and also put back equity partners’ autumn quarterly drawings until later this year.
Gowling WLG has also delayed its annual pay review for both lawyers and staff, with management promising the firm it will “confirm in the autumn” what the outcome of the review is. Any changes made to salaries as a result of the review will be backdated until 1 July.
Meanwhile Simmons & Simmons has begun making redundancies to its real estate team in London as a result of restrictions to the market following Brexit.