Mid-Tier Law Firms Boost Bonuses for Hardworking Junior Staff

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Certainly, here’s the article rewritten in the third person with a neutral, professional tone:

Mid-tier UK law firms are increasing bonuses for lawyers working longer hours to remain competitive with larger firms on pay. London-based firms such as Simmons & Simmons, RPC, and Shoosmiths have introduced or revised policies that offer enhanced payments to lawyers based on the number of hours billed. These payments can reach up to 40% of base salary.

According to an internal memo obtained by the Financial Times, Simmons & Simmons is offering bonuses from 25% to 40% of salary for associates who exceed 1,800 billable hours. To qualify for the maximum bonus, associates must record at least 2,100 chargeable hours. This move aligns with a trend among UK firms to provide performance-based bonuses as a way to boost discretionary payouts without increasing overall salary levels, responding to an industry-wide increase in junior lawyer salaries.

Typically, lawyers charge clients by the hour but often work more hours than they bill, resulting in 2,000 billable hours equating to frequent 12-hour workdays. Simmons & Simmons had previously offered discretionary bonuses for extra hours but has now specified the potential earnings for junior lawyers starting this summer. The firm emphasized the importance of these changes in efforts to develop and retain talent, noting that supporting and rewarding associates appropriately is crucial.

RPC similarly adjusted its bonus scheme on May 1, allowing associates to earn up to 30% of their salary for additional billable hours, up from a previous cap of 20%. Associates must log at least 1,575 hours annually, including 1,500 billable hours and up to 75 hours of “investment time,” such as pro bono work, to earn a 5% salary bonus. Bonuses increase by 1% for every additional 25 chargeable hours recorded.

Antony Sassi, managing partner at RPC, described the changes as a modern, inclusive, and sustainable reward approach that aligns with the evolving expectations of new legal talent.

As firms seek innovative bonus structures, some, like Slaughter and May, have chosen not to raise pay for junior lawyers despite previous trends towards higher salaries due to robust deal activity during the pandemic. Instead, they have maintained salaries for newly qualified lawyers at £150,000, suggesting a cooling in the pay wars.

The initiatives by mid-tier firms raise concerns about potential burnout among junior lawyers, an issue that gained attention during the Covid-19 crisis. Shoosmiths has implemented a bonus scheme for associates working extra hours, capping at 1,900 hours to avoid encouraging excessive work in pursuit of uncapped bonuses. The scheme allows associates to earn up to an additional 19% of salary, contingent on firm performance, with bonuses beginning at 1,485 chargeable hours and the first payments scheduled for July 2026.

David Jackson, Chief Executive of Shoosmiths, stated that the scheme is part of the firm’s goal to become a leading upper mid-market law firm by 2030.

Several major international law firms, including Herbert Smith Freehills and Linklaters, have long provided additional bonuses for increased billable hours. UK associates at Herbert Smith Freehills are expected to achieve 1,700 billable hours annually, with bonuses available at 1,800 hours. Linklaters offers a “disruption bonus” for high-billing associates who work particularly long hours. Both firms declined to comment on these programs.

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