The ILFM has now run a second follow up survey in conjunction with Saffery Champness to understand the impact on UK law firms and their strategies around furloughing their staff members.
Furloughing – where are we now?
At the beginning of April, we reported that 77% of firms had communicated a furloughing programme to staff, and it is not surprising to see that number rose to 91% during the month. Although that rise may seem alarming, as always, context is important and, of those firms that have furloughed staff, most (almost 60%) have reduced the workforce by no more than 40%, and almost half of those by no more than 20%. More...
An ongoing reluctance to vary contracts
Last month, we reported that the majority of firms had not introduced pay reductions for staff members who had not been furloughed, and that remained during April with 78% of firms keeping pay levels the same, and only 3% reducing pay by more than 20%. More...
Short-term pain for long-term gain?
These moderate measures for staff members who remain in work do not come cheaply, and almost a third of firms surveyed predict a fall in profit of greater than 25% over the course of the year, with 10% anticipating that they will now make no profit at all. More...
Looking to the future
Despite the obviously huge impact of Coronavirus, most firms remain comfortable that they will be able to at least fulfil their regulatory obligations. Only 13% of participants predict difficulty in meeting regulatory deadlines, such as SRA Accounts Rules and Companies House filing requirements. In any case, the SRA is releasing dynamic guidance to help firms fulfil their duties in this respect. More...
You can read the results and download a full PDF here.
The Institute of Legal Finance & Management
Our thanks to Saffery Champness for working in this with us.