Trowers & Hamlins has cut benefits for its Middle East staff, potentially reducing individual employees’ disposable income by thousands of pounds.
According to a document issued to staff this week and seen by The Lawyer, six distinct benefits will be suspended or terminated, some of them with immediate effect. These include payment of employee utility bills, flights home, recreation club allowances, provision of landlines, faxes and internet, petrol and vehicle expenses and a currency protection scheme.
In addition, the announcement stipulates that a salary review due on 1 May will be cancelled. The firm’s travel policy has also been revised, with restrictions on business class travel.
A firm spokesperson said the economic environment was to blame for the cuts.
The spokesperson added: “Given the current economic environment it’s only natural for us to undertake a review of the discretionary benefits offered to partners and other team members in order for us to avoid, insofar as possible, any further staff cuts.
“As with most employees overseas benefits include contributions to accommodation, flights, vehicles etc. A number of these have been revised and/or cut until further notice.”
Many of the benefits discussed are offered as standard to employees at international firms in the Middle East and are considered as remuneration for contractual purposes. However, Trowers is one of the few international firms to ringfence benefits from basic remuneration packages.
One employee said: “The announcement was made two days before it would happen. It was a sudden surprise and the financial impact is great, especially if you’ve got a family.
“There’s a clause in the employment contract that they reserve the right to take away allowances. When I joined I brought it up and was told they would never take it away.”
“There’s a clause in the employment contract that they reserve the right to take away allowances. When I joined I brought it up and was told they would never take it away.”
I am totally gobsmacked. What kind of lawyer doesnt ask for such important contractual points to be confirmed in writing.
“I am totally gobsmacked. What kind of lawyer doesnt ask for such important contractual points to be confirmed in writing.”
One employed by Trowers?
Trowers’ Dubai package was sold to employees on the basis that rather than having an increased salary figure (which employees in the overseas offices would complain about because they were on lower salaries) the package would include these so called “benefits” so as to effectively put people employed in the Dubai office (almost) on par with other lawyers employed in the region. On that basis taking away these “benefits” is shameful; people have moved out their families on the basis of the financials offered only to see (after presumably putting in v long hours) those financials reduced significantly once they get here. The facts speak for themself. Tut tut.
Absolutely, they offer less – expect more (longer hours are mandatory) and have some really horrible partners in the Dubai office.
When you push them on the benefits … they were worth nothing. The internet, utility and phone were only up to an agreed amount (far shy of the current requirement). They tried to sell you on a beach club membership for around 1,000 pounds knowing that no beach club in Dubai would take you on.
Their health insurance was poor
But as someone else said – they sold you the benefits on the basis that your base salary (which under the UAE Law is what your end of service gratuity is calculated on) was substantially less than market.
I am yet to meet a happy trowers fee earner
I agree with the comment by the anonymous person on 6 April.
Only a Trowers lawyer wouldn’t ask for it in writing. This is because the quality of lawyers have dumbed down dramatically. As a senior fee earner, we are faced with some real quality issues with fellow employees not really understanding what’s required when it comes to basic law. The attitude is “well, let’s have a go”.
Is there any other city firm that pulls of a shareholders agreement from PLC because they don’t have a decent precedent? The standards are dropping. It’s not helped with the fact that morale is at an all time low. I agree that the economy is a factor, but the lack of communication and no real focus on people’s long term career prospects is very worrying. I’m a senior fee earner and will look to move as soon as things improve. Trowers should note I work with some good people who are being held back by power hungry and inexperienced ‘young’ partners.
Mr Adlington should note that his pension policy is likely to suffer if the motivation of the assistants is not addressed soon. In Trowers only the partners smile and not the assistants (believe me, I know what I’m on about).
It is not just the economy, there are serious managment issues. I for one was a happy escapee from the Trowers Middle East mess. Why cut all those benefits when anyone who knows the place knows there is a HR muppet flying round the world business class. Are the partners who get two business class flights back to Aus a year giving those up…I doubt it. No lets just piss everyone else off when morale has been at a hideous low for the last 2 years. Shouldn’t be so scathing as I think there is at lease one partner there who has morals and resigned a couple of days before this all hit the fan. No confirmation that this was the reason but hard to not put two and two together.
A happy Trowers escapee!