#16 The Legal Profession This Week: Childcare Benefits and Pay Wars​


By Dheepa​

Law Firms Extend Childcare Benefits

According to a report by Law.com, Cooley and Clifford Chance have extended their existing health care plans to cover fertility treatment for its employees. Cooley will reimburse staff up to £45000 for treatments covered by its global provider. The treatments range from in vitro fertilisation (IVF) to adoption services. All employees and their partners are eligible for these extended benefits. Clifford Chance made a similar decision to offer fertility support after data from a menopause and fertility app that the firm partnered with showed significant staff interest in fertility services.

These developments point to a positive shift on the conversation surrounding balancing a demanding legal career and family obligations. Firms have become more eager than ever to support their lawyers on both fronts. Just last year, Linklaters and Allen & Overy began offering 12 weeks of paternity leave, a significant increase from the 2 weeks previously offered. The additional benefits have also furthered diversity and inclusion causes. Longer paternity leave helps challenge traditional notions of a woman's role in the workplace and at home. The extended benefits at Cooley are also available to all LGBTQ+ employees and any single parents by choice (Law.com).

Pay Wars - Clifford Chance Raises NQ Salaries

The Lawyer revealed that Clifford Chance is set to increase its newly qualified (NQ) solicitors’ salaries. The base salary is now set at a minimum of £100,000 with room for discretionary bonuses to push this amount higher. The announcement seems to lack impact, possibly because of the recent increase in associate salaries in the US. Milbank kicked off the pay rise announcements, with Vinson & Elkins, Davis Polk & Wardwell and several other law firms following quickly after (The Lawyer).

As the London offices of US firms typically match US salaries, this does not bode well for UK firms already struggling to keep up in the compensation market. One reason for the lag behind US firms could be that UK firm profits have stagnated significantly in recent years (Law.com). As the pay war continues to plague the London market, it is likely that UK firms will be playing catch up with their US rivals for the foreseeable future.

‘Business as usual’ – the notable deals and cases which went ahead this week:

Several firms are acting on KKR’s acquisition of infrastructure investor John Laing. Freshfields Bruckhaus Deringer is advising the FTSE 250 infrastructure firm, building on its existing relationship with the firm since acting on its initial public offering (IPO) in 2015. Meanwhile, Simpson Thacher & Bartlett is advising KKR. Herbert Smith Freehills (HSF) is also advising KKR on the pensions side while Ashurst is advising Goldman Sachs, the financial advisers to KKR (The Lawyer).

Davis Polk & Wardwell is advising Made.com, an online furniture retailer, on its London IPO. HSF is providing employment advice to the retailer while Latham & Watkins is advising the banks on the transaction (The Lawyer).