Revealed: Linklaters redundancy package
Linklaters redundancy package" />The full details of the proposed Linklaters redundancy package have emerged, with staff effectively offered five months pay as well as a lump sum based on time served at the firm.
A source within Linklaters said that lawyers would leave at the end of February, and would be paid for March and April.
They will also receive a three month notice pay-off and three-weeks pay for every year spent at the firm, including time spent as a trainee.
A three-year PQE associate that trained at the firm, spending five years in total at Linklaters, would therefore get a pay-out of roughly £64,000.
The package is based around time spent at the firm. A more senior lawyer joining only a year ago would still only receive the five months pay plus three weeks pay.
Linklaters is providing outplacement services, including setting up a ‘Resourcing Centre’ in the firm’s London office providing access to recruitment consultants.
The redundancy programme, which will see more than 200 jobs go in the firm’s UK office and include partnership cuts, is part of an push to change the shape of the firm called Project New World (23 January).
The Linklaters package in full:
Three year PQE salary (gross): £90,800
Five years worked times three weeks salary (gross): £26,192
Three months notice payoff (gross): £22,700
Two months pay (gross): £15,133
Total redundancy package (gross): £64,025
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Readers' comments (5)
Anonymous | 12-Feb-2009 8:02 pm
An exaggeration
It's a gross mischaracterization to refer to the two months pay (for March and April) as a generous extra to the redundancy package being offered by the firm when it is in fact something the firm is obliged to pay. Because over 100 employees are being made redundant, by statute the "consultation period" must last for 90 days (i.e., approx 3 months) before anyone can be terminated. As the consultation began at the start of Feb, it would terminate at the end of April, and this would be the earliest that employees could be terminated. Most employees also have three months notice in their employment contracts. Therefore, the only non-contractual, non-statutory element of the redundancy package is three weeks salary for every year worked.
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Anonymous | 13-Feb-2009 10:28 am
but it's still a good deal...?
Whilst the comment above is accurate, regardless, 3 week's salary per year worked is above and beyond what every other firm seems to be offering. Given many firms are only offering statutory, I think it's actually a great deal. No one wants to be made redundant, obviously, but still I think Linklaters are being castigated unecessarily...
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Anonymous | 13-Feb-2009 3:06 pm
Links Redundancy Package
It is a generous package but what you fail to mention here is that the package is capped to your annual salary, so long time servants of the firm could actually lose out big time...
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Anonymous | 14-Feb-2009 0:54 am
Linklaters Redundancy Package
Interesting when its comes to perception regarding the 'Magic Circle' firms and their leadership in the field. Clifford Chance is also undertaking heavy staff redundancies and yet their package to departing employees by far outstrips that of their so-called rival Linklaters.
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Em | 17-Feb-2009 6:04 pm
Really?
"Far outstrips"? I'd say this is just plain wrong. 3 months notice, 2 months till end of consultation, plus 3 weeks per year worked. How does CC "far ourstrip" this? Interested to know...
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