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Law360 (April 15, 2020, 2:44 PM EDT) -- Norton Rose Fulbright will soon ask some of its employees outside of the U.S. to move to a four-day workweek — in a decision that mirrors a similar action taken by the law firm a decade ago amid the global financial crisis — as businesses respond to the economic challenges from the COVID-19 outbreak.
According to a Wednesday announcement, a majority of eligible employees accepted the firm's proposal to implement the "temporary flexible working" program at its outposts in Europe, the Middle East and Asia, where the firm has more than 2,100 employees. The program, which doesn't apply to staff in the U.S., is set to take effect Monday.
"Our priority is to safeguard jobs and our business for the future for our people and our clients," EMEA managing partner Peter Scott said in a statement, adding that the overwhelming support of the program "shows how our people have come together, during what is a challenging time, to support their colleagues and the firm."
Over the next 12 months, the firm said it plans to ask participants who register for the so-called Flex program to cut their workweeks by 20%, and receive 80% of their base salaries.
"People at the lower end of the salary spectrum may also see a reduction in their working week by 20%, however, their salary reductions will be lower, reducing down on a tapered basis from 20% to 5%," the firm said in an earlier announcement detailing the proposal.
Norton Rose originally proposed the plan April 2, asking eligible personnel to agree to a possible change in the conditions of their employment for a year beginning on Monday. Employees in its Europe, Middle East and Asia offices are eligible, subject to local needs and regulations, the firm said.
"The criteria used to determine who of those signed up will be selected to follow a reduced working week will be based on the needs of the business and will be assessed on a departmental and team basis," the firm said April 2.
And similar to measures taken by other firms across the globe, Norton Rose also said it plans to defer partner distribution payments and bonuses, as well as staff salary increases and bonuses.
"Flex worked exceptionally well for us a decade ago, which is why we are proposing a similar flexible working strategy aimed at keeping our workforce intact," Scott said in the April 2 announcement. "We believe that if we keep the firm together we will maintain the strength of the business to take immediate advantage of the upturn when it arrives and provide our clients with continuity of service."
Meanwhile as the COVID-19 crunch continues, other firms have recently taken different cost-cutting measures. Kelley Drye & Warren LLP on Tuesday warned its attorneys that pay cuts are on deck, unveiling a salary reduction for all employees making more than $100,000 annually as well as cuts to equity partner compensation.
Kilpatrick Townsend & Stockton LLP has reduced pay for attorneys and staff. And Goodwin Procter LLP said Friday that it was trimming its global operations team by laying off "a limited number" of nonattorney staff.
Addleshaw Goddard, Baker Donelson Bearman Caldwell & Berkowitz PC, Baker McKenzie, Bird & Bird LLP, Cadwalader Wickersham & Taft LLP, Eckert Seamans Cherin & Mellott LLC, Pryor Cashman LLP, Simmons & Simmons, and Slaughter and May have also recently announced cost-cutting actions stemming from the pandemic.
--Additional reporting by Hailey Konnath, Emma Cueto and Xiumei Dong. Editing by Orlando Lorenzo.
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