Unpaid leave 每 an unexpected bonus?
The financial crisis in 2008 hit law firms hard. Firms worldwide responded by laying off lawyers and support staff. Law firms in China are not immune. In the May 2009 LawInnSight we tracked downsizing and layoffs by 13 law firms in China.
Layoffs have costs and negative repercussions. These include costly severance and outplacement expense, lost talent, alienating potential future hires, among others. To avoid layoff costs many firms in China are using selective "soft layoffs" or "stealth layoffs" instead of typical layoffs.
"Soft layoff" describes a variety of measures used to shed workers without need to pay severance. These actions include unpaid leave, salary freezes, salary cuts, benefit cuts, bonus cuts, four-day weeks, non-renewal of employment notices, and job sharing.
The LawInn research team gathered information tracking soft layoffs by 10 foreign and domestic law firms in Shanghai and Beijing from April '09 to July '09. **See notes below for research methodology. The firms are〞Baker & McKenzie, Clifford Chance, Commerce & Finance, Eversheds, Freshfields, Haiwen, Jun He, King & Wood, Mayer Brown and Zhonglun.
Most of the firms initiated salary freezes. The second most frequently used measure was pay cuts. Baker & McKenzie, Mayer Brown, Commerce & Finance, Jun He and Zhonglun did this. Many law firms〞such as Baker & McKenzie, Clifford Chance, Freshfields, Haiwen and Jun He〞offered staff the option of taking voluntary unpaid leave or working shorter hours. Some cut benefits, like Eversheds. Some firms are sending non-renewal of contract notices.
Among all the schemes, unpaid leave and shorter work hours are popular ways for firms to save costs. For lawyers affected by unpaid leave and shorter hours, it's not necessarily a nightmare. Freed up time may be profitably used for off-the-job activities. Lawyers can gain career advantage and personal satisfaction from these activities that may be missing during boom times.
Networking
Career counselors routinely emphasize the value for lawyers to build a network of diverse people. A downturn creates more time for lawyers to take part in social activities. Different organizations grab the chance to hold parties. Networking websites such as LinkedIn, Facebook, and Kaixin001 provide platforms to share information and keep social relationships. Boom times may provide more income; down turns mean more relaxation, a chance to adjust your life rhythm, an opportunity to enjoy life. And, you may find your future clients.
Training
Free time offers lawyers the opportunity to upgrade skills. Legal education programs and short-time vocational trainings should be explored. Lawyers succeed on their personal assets. A downturn is a chance to build personal assets〞to be ready to make a splash when busy times come again.
Many organizations in Shanghai offer professional training 每 SynXpace, for one. SynXpace offers a range of communication training and leadership development programs for Chinese and foreign professionals. Programs are adapted to the market and needs of participants in terms of cultural and organizational communication.
Pro bono & volunteer work
It's reported that many of the firms in the US/UK are encouraging their lawyers affected by unpaid leave policies to find work in non-profits and charities. Lawyers, especially junior 每 middle level ones, who are main targets for soft layoffs, are encouraged to get involved in pro bono and volunteer work. The experience can help them acquire skills they would not normally have until much later in their careers. They gain experience they would not get from working in a regular practice group.
Numerous citizens wanting to contribute to Expo 2010 are applying for the Expo volunteer program. Lawyers who share the same enthusiasm, please e-mail charyouexpovol@expovolunteer.online.sh.cn to learn more about the volunteer program. (Website of Volunteer of Expo 2010 Shanghai China: www.expo2010volunteer.cn)
**Notes on research methodology 每 Information does not come directly from employers. Data was collected from press reports and human contacts. The precise number may vary from what we recorded. If you know any mistakes, please let us know.
