Embattled major national firm DLA Phillips Fox appears to be at it again. We received the following email from an
Not only have DLA Phillips Fox had two rounds of redundancies. But all of the staff have also had their salaries reduced by 10%. To compensate staff for the reduction in pay they are entitled to take off one day a fortnight unless they have work to do or are needed. So it is essentially a 10% reduction in pay with little in return.
If you thought a pay freeze was an oppressive development, think again! If this claim is true, it would make DLA Phillips Fox the first major Australian law firm (that we’re aware of, anyhow) to have introduced a scheme of reduced pay for reduced work. We have seen similar chicanery at KPMG and PriceWaterhouseCoopers, but nothing from the major law firms.
In terms of the corporate paroxysms we have variously reported since the outset of the GFC, this development, if true, must surely mark a new meridian. You’ll recall DLA Phillips Fox is rumoured to have implemented:
- a first wave of redundancies;
- a pay-freeze;
- a second wave of redundancies; and
- a tenancy squeeze combined with an alleged third wave of redundancies.
We invite a clarification from DLA Phillips Fox. Stay tuned for more developments as they come to light. Send the Firm Spy your news and views!
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I am an employee of DLA Phillips Fox (Sydney) and ‘all’ staff have not had their salaries reduced by 10%. There a number of junior lawyers on my floor who have been asked to ‘work flexibly’ for eg one works a 9 day fortnight and is paid accordingly.