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Mid-tier UK law firms are offering lawyers higher bonuses for working longer hours as they attempt to find ways to compete with deeper-pocketed rivals on pay.
London-based Simmons & Simmons, RPC and Shoosmiths have launched or updated policies that reward lawyers for the more hours they bill, in some cases amounting to extra payouts worth as much as 40 per cent of base salary.
Simmons is offering bonuses this year of between 25 per cent and 40 per cent of salary for associates who record more than 1,800 billable hours, according to an internal memo seen by the Financial Times. Associates must record a minimum of 2,100 chargeable hours to receive the top amount.
The firm joins a growing number of UK outfits offering performance bonuses to increase discretionary payouts without raising pay levels across the board, after a war for talent pushed up junior lawyer salaries substantially.
Lawyers charge by the hour for client work, but work many more hours than they bill, meaning 2,000 billable hours can equate to regularly working 12-hour days or longer. Simmons already offered a “discretionary” bonus for extra hours billed, but has changed the scheme to quantify the exact amounts junior lawyers can earn from this summer.
Simmons said the changes were “a central part of our efforts to develop and retain talent . . . supporting associates across the firm and rewarding them commensurately for their efforts is crucial”.
UK law firm RPC has also made changes to its bonus awards, which came into effect on May 1, with associates able to earn an extra 30 per cent of their salary for additional billable hours. Previous bonuses were capped at 20 per cent of salary.
The firm said associates were required to record at least 1,575 hours a year, comprising at least 1,500 billable hours and up to 75 hours of “investment time”, such as pro bono, to receive a bonus of 5 per cent of salary. Bonuses increase 1 per cent for every additional 25 chargeable hours.
Antony Sassi, RPC’s managing partner, said the change was a “more modern, inclusive and sustainable approach to reward — and one we believe reflects the evolving expectations of the next generation of legal talent”.
Firms are becoming more creative about who is in line for bonuses, after a spate of “special bonuses” linked to a pandemic-era deals bonanza. Elite law firm Slaughter and May opted not to increase pay for its junior lawyers this month, holding salaries for newly qualified lawyers at £150,000 in a sign the pay wars may be cooling off.
The moves by mid-tier firms risk reigniting concerns about junior lawyer burnout, which also came to a head during the Covid-19 crisis. Shoosmiths, which has offices all over the UK, has introduced a bonus scheme for associates working additional hours but has set a ceiling at 1,900 hours to avoid incentivising “anyone to work excessive hours chasing a bonus with no cap”.
Its programme allows associates to earn a maximum extra 19 per cent of salary, depending also on the firm’s performance. Bonuses kick in at 1,485 chargeable hours, with the first set to be paid out in July 2026.
Chief executive David Jackson said the scheme was part of the firm’s ambition to be “a leading upper mid-market law firm by 2030”.
Several top international law firms, including Herbert Smith Freehills and Linklaters, have long offered extra bonuses for more billable hours. UK associates at HSF are expected to hit 1,700 billable hours annually and at 1,800 will receive a bonus, which increases the more hours billed, according to one person with knowledge of the situation.
Linklaters offers high-billing associates a “disruption bonus”, aimed at rewarding those junior lawyers who have worked particularly long hours in a year, according to a person with knowledge of the programme. Both firms declined to comment.
