_{Budget cuts bite in the real estate team.}

Fladgate has taken inspiration from the 1970s and asked its lawyers to work a four day week for four days' pay.

Property associates at the 93-partner City firm were brought into a meeting this week and told in no uncertain terms that the firm, and in particular the real estate team, was “massively behind budget”, according to a source.

The chastened lawyers were informed that as a cost saving measure they have until the end of next week to confirm if they're willing to drop down to a four-days-a-week working pattern.

Before they hands could shoot up, they were given the kicker: there’s to be a proportionate decrease in pay in order to meet budget requirements.

“It wasn’t stated”, said a source, but the "implication was that if associates do not choose this, a number would need to be let go”. 

A source close to the firm denied that job losses would be the alternative, emphasising that the part-time plan was voluntary. not obligatory, and is only intended to be in place for three months. The source also said that there was no redundancy program waiting in the wings.

The upside of such belt-tightening is the prevention of job losses, indicating that Fladgate would rather upset a majority by 20% than a minority by 100%. It's not an entirely novel solution. Back in 2020 as fears of the economic impact of the pandemic took hold, nearly 200 people at Pinsent Masons opted to work a four day week on 80% pay.

This time around property lawyers are taking the brunt, and it's a market-wide issue. 43 real estate jobs are being terminated at Trowers & Hamlins, while UK revenues at BCLP - which has traditionally had a strong real estate practice - have plummeted partly due to a drop-off in transactions (although BCLP said most of the blame lay with its costly withdrawal from Russia). Fladgate's proposal follows the recent departure of two other lawyers from its real estate practice.

Fladgate declined to comment.