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Shardul Amarchand Mangaldas (SAM) announced its annual increments yesterday. Sources have informed us that the increments range between 20% and 75%.
However, these huge increments come with a clawback provision. Lawyers on retainer who leave the firm in the next seven months starting this September, will have to repay to the firm three months of their retainer fees.
This rider is applicable from September 1, 2018, to March 31, 2019.
The increments are done on a pro rata basis. The retainer will get a certain amount of her increment till September, but to get the additional increment, the retainer must not leave the firm in next seven months. If she leaves, she needs to repay the firm three months’ retainer fee.
This is how the clawback provision reads:
“This enhancement in retainership fees is conditional upon completion of a minimum of 7 months as a retainer with the Firm from September 1, 2018, failing which, three months retainer fee will be payable to the Firm within 30 days of resignation or on the agreed last working date”.
Sources within the firm say that SAM has introduced these changes with the intention of becoming a market leader in remuneration. They already have market-leading variable pay incentives, where Associates and Partners can earn up to 200% of their variable component. This has been in place for the last 3 years.
Whether this new change in policy will go down well with the fee-earners or the new hires, only time will tell.
This news was first reported by Legally India.