As the economy falters, a number of large law firms have executed or are considering reductions in force as a means of cutting costs and “right sizing” the firm for the amount of work available.Traditionally, law firms have quietly asked terminated associates to “start looking around” to make the transition as painless as possible.But, in economic down turns, firms have become more aggressive with the vast majority of firms asking redundant associates to leave immediately.In such circumstances, we are starting to see some standard benefits developing.While the following are not truly standardized, they do seem to represent a fairly strong consensus:
Six months compensation for associates with more than one year of service
Three months compensation for associates in their first year or who have accepted offers but have not yet started
Continuation of insurance benefits for the duration of the severance period (except for associates whose offers are being canceled)
Continued access to their firm voice mailbox and forwarding of email messages
The offer of some level of outplacement.Outplacement ranges from a one-day seminar to more complete counseling and coaching services.Outplacement, if offered, is almost always voluntary on the part of the associate.
Packages for staff typically provide one week’s pay for each year of service with a minimum of four weeks.Typically benefits are not extended except for rights under COBRA.
