International law firm Reed Smith is reducing the employee pay cuts it implemented in June 2020 to deal with the financial ramifications of the Covid-19 (Coronavirus) pandemic.
The organisation, which has 12 offices world-wide including London, will be increasing the pay of its employees whose yearly salary before the pay decrease was over $100,000 (£76,317), by 5%. The employees, who are currently on a 10% pay reduction, will now receive 5% less than their contracted basic salary. Board members and lawyers who have seen a 20% reduction in pay, also since June, will see their pay rise by 5% and will receive 85% of their contracted payment, effective September 2020.
Associate level employees who saw their basic pay reduced by 15% in June, will remain on the same level, however, plans to further reduce their pay by 5% to 20% in September, have now been withdrawn.
A spokesperson at Reed Smith said: “Reed Smith has kept its focus on what is most important as we manage through this extraordinary pandemic: protecting the safety and wellbeing of our people and supporting our clients.
“Earlier this year, we announced reductions in compensation across the board affecting lawyers and many of our professional staff. At that time, we committed to evaluating those measures as the year progressed.
“While we continue to manage our business prudently today, we are announcing a partial rollback in compensation reductions.”