Economic uncertainty after Brexit threatens pay
One potential fallout from the Brexit vote is a freeze on planned pay raises at London law firms. One firm in the city has reportedly indicated that it will at minimum review its planned pay raises for first- and second-year trainees, who were scheduled to receive raises of £1,000 and £3,000 respectively this summer. No final decisions have been made yet.comments powered by Disqus
There is precedent for such an action in the past. After the credit tightening in 2008, a majority of big law firms in London put a freeze on associates' salaries, a policy that extended for years. A notable example was Freshfields Bruckhaus Deringer, which had its pay scale frozen for five years.
In recent times, pays has begun to raise. Just in the past month, several firms began to match a pay raise set in the New York market for associates there.