Mishcon, Pinsents Float Reduced Week for Lawyers as CMS, HSF Take Action In Spain

Pinsent Masons and Mishcon de Reya have taken further steps to offset the disruption of the COVID-19 pandemic, while two international firms have enacted cost-cutting measures in their Spanish offices.

According to Mishcon De Reya managing partner James Libson, the firm has announced that should the market conditions worsen, staff will be asked to sign up for reduced hours and pay which could seem them working 3.5 day working weeks.

Pinsents has confirmed that discussions are currently underway regarding the potential for a similar reduced working week with a pro rata reduction in pay.

Both firms had previously announced changes to partner pay.

Meanwhile in Spain, CMS and Herbert Smith Freehills have taken steps to limit the financial impact of the crisis.

11 staff have been cut from the Madrid office of CMS Albiñana & Suárez de Lezo. Those affected include six associates and two secretaries who are being made redundant, and three interns who the firm says will be rehired in October.

The firm said it continues to hire in areas where activity levels are strong including employment, litigation, IP and on its German desk.

Meanwhile at HSF, all fee-earners and business services staff in its Madrid office will start working a four-day week with a 20% pay cut from May 1, the firm confirmed in a statement.

The new measure will last for an initial six months, and the firm added that it will review its position again.

Earlier on Friday, CMS announced that it would be deferring all partner distributions from July until later in the year.

Earlier this month, HSF said it will reduce its partner profit distributions and also slow the pace of when they are paid out to partners from May on. The firm has also frozen salaries and pushed back pay reviews until October.

Mishcon previously announced it would reduce partner drawings by between 15 and 50%, and freezing partner profit distributions. Libson added that it was the firm’s policy that “partners bear the lion’s share of any cuts we deem appropriate to protect our business.”

In addition, the firm confirmed it had furloughed some staff  who are unable to do their job in the current environment, as well as those in areas of the firm where work has reduced because of the crisis.

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