Clifford Chance (CC) has joined its UK magic circle rivals in freezing salaries and deferring partner distributions in response to the Covid-19 lockdown.

Salary reviews are being deferred to November while payment of end-of-financial-year bonuses is now being staggered with a portion being deferred until November.

"We are a strong and resilient organisation, with over five years of robust global growth behind us,” it said in a statement. “Our teams are always a source of huge pride, they are fantastically talented, motivated and collaborative, and never more so since the virus has begun to spread.  Over the coming months our aim is to keep these teams together and to work shoulder to shoulder with our clients who need our support now more than ever."

The measures are similar to those being taken by the firm’s large international magic circle peers: Allen & Overy (A&O), Freshfields Bruckhaus Deringer and Linklaters.

However, A&O did reveal that it was increasing partner capital levels when it confirmed the measures it was taking last month.

And it would appear that Slaughter and May’s associates are still awaiting news of pay reviews and bonus payments, although Roll on Friday reported earlier this month that partner distributions are being deferred.

Unlike many firms in the UK top 50, CC is not making use of government-funded furlough schemes.

The issue has divided opinion in the UK with some commentators arguing that well-resourced financial services firms should not be taking advantage of subsidised furlough schemes.

Writing in the Lawyer Watch blog, former Linklaters partner Trevor Clark drew parallels between City law firms and Premier League football clubs. 

‘The government’s furlough scheme should not be accessed as a first step,’ he said.  ‘And if accessed at all, this should only be if a firm is facing collapse, having first tried other measures. This scheme is not aimed at large City law firms, for the same reason is not aimed at Premier League football clubs.’

However, Edward Sparrow, chair of the City of London Law Society, has defended the practise, which is being deployed by a host of leading firms including Hogan Lovells, DLA Piper, Taylor Wessing and Eversheds Sutherland.

He told The Law Society Gazette that it was unfair to single out law firms for "taking legitimate advantage of a government scheme intended to avoid employee lay-offs". 

Further reading on the Covid-19 pandemic

Client entertainment under lockdown: the show can go on — Dutch firm Houthoff offers clients 'virtual night out' with exclusive streaming of popular ballet

A question of timing: the different responses of US and UK elite law firms to Covid-19 — Looming decisions over associate pay and bonuses are a factor in the timing of UK law firm Coronavirus measures

Above all, this crisis too will pass — Rob Millard foresees large law firm mergers and accelerated digitisation in the wake of Covid-19

'It is about being proactive and decisive' — Norton Rose Fulbright EMEA managing partner Peter Scott on the thinking behind the firm's flexible working scheme

General counsel braced for six-month shock to their businesses, survey finds — MoFo poll of 110 GCs finds them making unprecedented decisions as HR issues dominate

'Now is the time for law firms to deliver on their stated values' — Consultant Tony Williams advises law firm leaders to avoid knee jerk decisions and go into communication overdrive during the Covid-19 crisis

Unprecedented response to Covid-19 is 'testament to legal profession's resilience — Stewart Salwin is impressed by how quickly the Arizona courts have adapted to the coronavirus crisis

Staff welfare, supply chain and privacy: the coronavirus-related issues keeping GCs awake at night  — Linklaters, Baker McKenzie and Ropes & Gray have published the most sought-after briefings, according to Lexology

'I have realised how powerful technology now is': an Italian lawyer's take on Covid-19 — The lockdown is forcing Italians to embrace digitisation - and that even includes its public officials, writes Gabriella Geatti

Coronavirus risk may be unprecedented, but the fundamental principles of crisis response still apply — Crisis PR specialist Bethaney Durkin advises law firms impacted by the coronavirus to act quickly while avoiding a kneejerk response