International law firm Herbert Smith Freehills (HSF) will split its bonus payments annually paid to its 5,000 employees due to the financial constraints of operating during the Covid-19 (Coronavirus) pandemic.
The bonus, normally paid in full to employees in July, will be split into two increments; 50% being paid in July, while a further 50% will be paid towards the end of the calendar year.
HSF also confirmed that it will be reducing its partner profits distributions, however, the organisation won’t be undertaking any employee salary reviews. All employees globally will remain on the same salary that they are regularly paid, the organisation will aim to review this policy in six months time.
A spokesperson at HSF said: “This is a global and evolving crisis, with major human and economic impact. We cannot predict how long it will last, or how deep it will be. Like all businesses, we have carefully considered the prudent measures we need to take to protect the firm and our people.
“We have already taken a range of steps to reduce costs where we can, and we are in a strong financial position following a partner capital increase and a strong capital focus over the last twelve to eighteen months. To ensure we remain resilient, we have decided to take some additional measures.
“No business is immune to the effects of Coronavirus and keeping our business strong for the future remains our priority.”