Shardul Amarchand Mangaldas offering 15L fixed fresher salary; Does away with bonus component

In a marked departure from the norm, Shardul Amarchand Mangaldas is now offering a fixed salary devoid of any bonus component. According to sources in the market, the Delhi-headquartered firm is now offering 15 lakh to fresh recruits, placing it at the very top of the (base) salary chart as far as the bigger law firms are concerned..Why is this significant?.For starters, the soon-to-be constituted Amarchand entities are aggressively bulking up their teams. Both are looking to “laterally hire” (did someone say poach?) entire teams; with organic growth more or less ruled out in each other’s home markets. What Amarchand does, SAM or CAM, has a ripple effect on the rest of the legal market..Add an ambitious Khaitan & Co, a firm that has grown to a 100 Partner-strong one, and it is evident that the market is changing..Secondly, an open salary structure is almost alien to most Indian law firms. Although no one will go on record to confirm this, Indian law firms very often have salary scales based on office location, lateral and non-lateral hires, and even the lawyer’s education. Given this disparity, a flat, and open salary structure is an almost novel initiative..Lastly, Shardul Amarchand Mangaldas’ offer comes at a time when the legal recruitment market is on the upswing, and not just at the fresher level. A number of firms are dipping into their war chests, looking to expand teams and cope with the perceptible increase in workload..What will be interesting to see is whether other law firms will match this or stick to the more traditional route.