Following on from the revelation that Scottish trainees can expect half the wedge of their English cousins, there are reports of even more stinginess north of the border.
Top corporate outfit Dickson Minto - the most profitable firm in Scotland where senior partners trouser £1.5m (more than their counterparts at Clifford Chance) - is rumoured to have cut trainees' pay over the recession. True to its tight-lipped form, the firm refused to comment except to confirm that trainees' pay has never fallen to Law Society minimum wage levels of £15,965. So it could be £15,966.
Readers say that the bare minimum wage is paid by some of the other top firms, including MacRoberts (the firm failed to comment). Senior Associates in leading firms with four or five years' qualification under their belts can expect to make what a first seat City trainee pulls in. And some firms are apparently keeping NQs on three-month rolling contracts to screw them out of redundancy pay, or retaining them as paralegals or secretaries.
Certainly there are reasons for the lower wages in Scotland - chief of which, as McGrigors points out, is that trainees are charged out at a much lower rate. There are no uni fees for undergrad courses, and the cost of living is lower. But is Edinburgh really much cheaper than Bristol, where trainees make £30,000? The truth appears to be rather more prosaic. As one reader says, "the largest Scottish firms have been getting away with murder. But the trainees can't say anything as job competition is so fierce, it's a small market, and everything gets back to HR."
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Top corporate outfit Dickson Minto - the most profitable firm in Scotland where senior partners trouser £1.5m (more than their counterparts at Clifford Chance) - is rumoured to have cut trainees' pay over the recession. True to its tight-lipped form, the firm refused to comment except to confirm that trainees' pay has never fallen to Law Society minimum wage levels of £15,965. So it could be £15,966.
Readers say that the bare minimum wage is paid by some of the other top firms, including MacRoberts (the firm failed to comment). Senior Associates in leading firms with four or five years' qualification under their belts can expect to make what a first seat City trainee pulls in. And some firms are apparently keeping NQs on three-month rolling contracts to screw them out of redundancy pay, or retaining them as paralegals or secretaries.
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A Scottish trainee yesterday |
Certainly there are reasons for the lower wages in Scotland - chief of which, as McGrigors points out, is that trainees are charged out at a much lower rate. There are no uni fees for undergrad courses, and the cost of living is lower. But is Edinburgh really much cheaper than Bristol, where trainees make £30,000? The truth appears to be rather more prosaic. As one reader says, "the largest Scottish firms have been getting away with murder. But the trainees can't say anything as job competition is so fierce, it's a small market, and everything gets back to HR."
Comments
Why would firms be doing NQ's out of redudancy pay by putting them on 3 month contracts? They wouldnt have to pay them redundancy pay on completion of their traineeship. You ask any recently qualified NQ if they would take a 3 month rolling contract and most would bite your arm off. In terms of keeping them on either on contracts or as paralegals, in many instances this is reflective of the market and better than being unemployed for most.
Again, I am not disagreeing that the salaries are low and not entering into a discussion about whether this is right or not, but this is simply not some from of exclusive. Old news. Yawn.
- the complete lack of transparency. Have a look at grad rec websites and materials for Scottish firms - McGrigors is the only firm up-front about pay. Every City firm, almost without expection, freely admits what they pay their trainees.
- the partners are still raking it in at City+ levels. If your senior partners take home £1.5m, is paying 18k to a trainee acceptable?
- the point about redundancy is that NQs are being taken as temporary staff, rather than proper employees - doesn't that impact on continuity of employment (any employment lawyers about)? Appreciate it's a reflection on the market, but still seems shabby and feeding on desperation. What's to stop all NQs being taken on short-term contracts?
Dundas & Wilson. PEP of £330,000, with top of equity of £730k. Trainees start on £19k.
BLG (whilst it still exists). PEP £329,000, top of equity £462k. Trainee starts on £34k.
Maybe it's the London lawyers that are being overpaid...
Its not just with trainee pay that large Scottish firms get away with murder - pay rates are shockingly low. 6pqe on £46K anyone?
There really is no need in Scotland for Scottish firms to advertise what they pay trainees as they are advised of this by the law society. You know as well as I do that the reason why the city firms are so open is to attempt to trump each other and understandably this is to attact the best candidates. Not disagreeing but its not necessary in Scotland which you would realise if you had done your homework.
The reason why a trainee would join Dickson Minto would be to aspire to be a partner and earn the levels that the partners do. Of course there is money in the Scottish firms, but its proportionate to the level of experience.
The fact is that we are made to feel so grateful to the firm that this is supposed to eclipse any discussion of financials. Yes, we are lucky but we also deserve a fair wage compared to the work and expense to get into a position to be a trainee.
I for one will be heading south on qualification and not filling the pockets of partners who leave the office at 5 pm.
Perhaps now it is time to extend the "UK National Firms" section of Inside Info to include Edinburgh and Glasgow? DLA, Pinsents, Cameron McKenna and Eversheds all have offices in Edinburgh, and the top Scottish firms are of a similar size to, or bigger than, the English regional firms.