Published April 27, 2009

Foreign law firms cut fat, shed weight

Some opting for shorter work weeks; others trimming staff, offering sabbaticals

By SIOW LI SEN

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(SINGAPORE) Foreign law firms in Singapore are trimming headcount, freezing salaries and asking staff to work fewer hours.

But the layoffs here are nothing compared to those at their headquarters in the US and UK.

White & Case, one of the biggest US law firms, recently laid off 400 people including 200 lawyers, in its second exercise; last November, it had let go 70 lawyers and 100 staff.

White & Case - one of six foreign law firms to get the qualifying foreign law practice (QFLP) licence which allows them to advise on Singapore commercial law - is also reviewing its numbers here as part of a global exercise.

'We are currently undergoing an evaluation of our partnership, which will result in a reduction in the number of partners, commensurate with current and anticipated business needs,' said Nicholas Clarke, regional media relations manager - Americas, White & Case LLP.

'Although we have no immediate plans for redundancies in this office, we are keeping headcount under review in all of our global offices, as you would expect right now.' - Philip Rapp, managing partner, Clifford Chance Singapore

He said it was clear that the deterioration of the global economy would continue to affect clients and their demand for services for the foreseeable future.

Back home, these foreign law firms have seen massive redundancies. Up until March 13 this year there had been 7,092 layoffs (2,874 lawyers and 4,218 staff) among the largest US and UK firms, said thelawyer.com, getting the data from US legal market blog Lawshucks.com.

'The Asian economy is not immune to these forces. However, we are adopting a long-term view for the region,' said Mr Clarke.

Clifford Chance, another QFLP holder, is also reviewing headcount.

'Although we have no immediate plans for redundancies in this office, we are keeping headcount under review in all of our global offices, as you would expect right now,' said Philip Rapp, managing partner, Clifford Chance Singapore.

'Clearly, we can't rule redundancies out in the future when the market is continuing to evolve,' he said.

thelawyer.com reported in January that Clifford Chance would lay off up to 80 London lawyers. Last month, the firm said it would trim pay for its junior lawyers and freeze salaries for associates.

Taking a different route to saving costs is Norton Rose, which earlier this month voted for a four-day week in order not to have to lay people off.

'It gives the firm flexibility on its overall cost but no one is made redundant,' said Jeff Smith, head of Norton Rose (Asia).

The scheme, which was voted by 96 per cent of worldwide staff, will allow the firm to ask people to work four days a week on 85 per cent of base salary, or take a sabbatical of 1-3 months at 30 per cent of base salary.

Nobody will get less than 20 per cent of their annual income, said Mr Smith, who also voted for the scheme which starts on May 1.

The flexi-scheme applies worldwide, including the Singapore office, which Mr Smith says is very busy. 'I would say it will have limited application here,' he said.

The Singapore office (set up in 1982) has hired more than 10 lawyers over the past year, a handful of them local, Mr Smith said. Norton Rose, a UK-based firm, has over 50 lawyers in its Singapore outfit and is also a QFLP firm.

Local firms say they are benefiting from the redundancies of lawyers who work at some of the branded foreign firms.

'We've got so many applications from those at big international firms like Linklaters, Clifford Chance and Baker & McKenzie,' said Tan Peng Chin, managing director, Tan Peng Chin LLC.

'It's a golden opportunity for us,' said Mr Tan, whose firm has about 40 lawyers and recently recruited a Singapore-qualified lawyer with 6-7 years' experience from DLA, one of the largest law firms in the world.