Lawyers are working for 'less than minimum wage', new union claims

Saturday, 8 June 2019

Robert*, a solicitor in his mid 20s, knows he was underpaid in his first year at a major law firm.

He says he was regularly in the office for 55 hours a week and often more, so despite a $46k salary there would have been few fortnightly periods where his hourly rate matched the minimum wage, had he been paid for every hour worked.

Of course it's not fair, he says, but the culture of a large law firm means you put up or shut up. Complaining is not an option.

'You don't have a real ability to speak out and if you did there would be no change, because your wishes are less important than those of the partner you work for.'

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Robert has asked Stuff to conceal his name - talking openly could be a career-limiting move.

Another young professional, Oscar*, has left the law after a couple of years with one of the biggest corporate firms in the country. He describes hair-raising conditions while the team he was part of toiled to get major transactions over the line.

'When the transaction hits the stage where it's all go, you drop everything in your life. I joined (the firm) because I wanted to work on those kinds of transactions, and for most of the time I was happily involved, but the hours are massive. There were times when I'd be in the office over 80 hours in a seven day period. I'd have 3 a.m. finishes.'

Over the course of his law clerk year (first year with the firm) he averaged 50 - 60 hours a week. He says a couple of times he was given a gift card; most often the hours went unrewarded.

'It was discretionary and up to the partner to notice.'

The newly-formed Aotearoa Legal Workers Union believes Oscar and Robert would likely fall under minimum wage for large parts of their first year in the profession. The Union has a summary of the Minimum Wage Act and a table of calculations on its website, to help people work out whether they're being stiffed.

Long hours, and therefore pay, became a hot topic in the legal profession in the wake of the Russell McVeagh​ sexual harassment scandal last year. Dame Margaret Bazley was tasked with investigating aspects of the firm's management, policy and practices and found young lawyers were putting in punishing hours with insufficient recognition for their work.

In her report, Bazley wrote of junior legal staff finishing work as late at 4am and 'being at their desk within an hour of waking and in bed again within an hour of leaving their desks.'

She said discretionary rewards like 'prezzy cards' were not working 'because the partner either did not know or did not pay attention to the hours worked by staff.'

Recommendation 23 of her report suggests 'a fair system of days in lieu or payment for overtime be developed, applied consistently, and not left to the discretion of partners.'

Stuff asked 15 major law firms about their remuneration policies, and whether staff were falling below minimum wage rates during heavy workload periods.

Of the 10 that responded, most said despite having no formal expectation for staff to work more than the approximately 40 hours contracted, extra hours were needed at busy times.

Most described a mix of formal and discretionary compensation for extra hours including meals, days in lieu and overtime in some circumstances (Simpson Grierson), time in lieu and overtime on a discretionary basis (Kensington Swan), and compensation including flexible working conditions, sports teams, office pilates and massages (Duncan Cotterill).

Anderson Lloyd submits a formal quarterly 'hours worked' report to its board, compiled by their GM of Human Resources, to reveal 'patterns of hours worked beyond our expectations'.  A Working Hours and Additional Hours Policy is in place at Lane Neave, which covers 'the steps to take if an employee or supervisor identifies anyone continuously working over and above (normal) hours'.

Russell McVeagh, Chapman Tripp, Lane Neave, Simpson Grierson, Kensington Swan and Meredith Connell had all reviewed, or were in the process on reviewing remuneration policies. DLA Piper bases its annual review on the EY Legal Remuneration survey.

Like most lawyers, both Oscar and Robert accept extra hours are part and parcel of life in a big law firm - a belief they say is often underlined by conversations with partners.

'I've been told 'this is what it's like, this is what we did. We love the fact that you're one of us, and it all pays dividends in the end',' says Robert.

The ALWU says the hours are not the problem; the dollar recognition workers are given is. By not formally recognising overtime and paying workers for it, these firms are simply breaking the law, it claims.

'Wellbeing initiatives, days in lieu and monthly or annual bonuses are not enough to remedy these minimum wage breaches,' says ALWU interim president Hayley Coles.

'Employees must be paid at least the minimum wage every fortnight, directly to them. Prezzy cards don't count.'