Oh one more glaring fact about compensation that they hide from new joinees until they join.
They have a system called "Factor System". Your monthly salary is not fixed.
The compensation that your contract says, a percentage portion of it is dependent on monthly recoveries. So suppose your salary is 1 lakh, you may only get 80,000 in a month and rest 20000 will depend on how much you were actually able to collect (credited with the firm) in that month out of your expected monthly collection. If you manage 100% only then you get that 20000 but if you dont, you never see that money.
Also they keep that target so high that barring 1 or 2 teams (cyclically) no one meets that collection.
So as a thumb rule, everyone has to discount their on-paper compensation by 20-50%. Yeah that variable percentage of 'factor' keeps increasing with increase in level. Though they dont charge factor system on first years, but its upto them to decide. Also its depressing when you burn the midnight oil to churn out deliverables (you will need to) and then you dont even get your full pay coz the client has not made the payment yet. Oh you may think that we should just charge advance billing. Guess what, seniors hate to do that coz clients are so old and that would be insulting to ask.
Therefore it is expected that apart from being a lawyer in a big firm, you have to be a collection agent. You are expected to call and remind clients to make payments. In the politest of manners, again and again. Every week you would have to allocate some hours for it. Time that could be spent on doing actual work.
And they only tell you all this on the date of joining, when you are too late to make any informed decision.
In my view, the factor system is the most nauseating thing that exists here and only here. I have not come to know of any other firm that does this. Firms usually keep the monthly compensation fixed and only year-end bonuses depend on actual collections (which makes total sense).
There main teams are tax ones (indirect tax biggest one which brings lion's share of billing and direct tax at second place). IP team is then next biggest but they mostly prefer engineers/scientists over lawyers. General Litigation (with IBC work), Corporate and Tech Teams have sparsely spread work. They used to have Trade and Competition teams until those walked out and rebuilding has been tough.
I dont know how to answer the avoidable team question coz if you are in the main teams, they have most politics, but you get to learn by sheer quantity of work you are expected to bill. In the lesser billing teams, life is chiller but moving laterally becomes difficult coz no one in industry treats you as an experienced asset.
Oh btw, firings happen regularly. In higher billing team (if you can't keep up with pace) as well as in lower billing team (if they feel you are not doing anyting).
Didnt expect this much traction. I guess people do care about honest feedback.
This is my second attempt to re-write Point 3 and 4, hoping it doesn't get contested and omitted again. This forum is to help people make better decisions for their life and I'm just trying to help:
...
3. If you are a person who is just a pure hard worker but cannot engage in office politics, you will suffer. I suffered coz being really good at my work i was dumped more and more of it, while my peers enjoyed the perks of better appraisals and bonuses by doing half the work. Their secret ingredient was usually cowering to seniors or worse, bad-mouthing their peers and juniors to the seniors. I saw it happen first hand many times.
4. You cannot be allowed to be a kind and sympathetic mentor. I was reprimanded again and again as being "weak" coz I was not ruthless to my juniors.
...
Also yeah on-point on the culture aspect. This place is just too orthodox even for Millennials like me but we still persisted coz earlier this place used to have a bigger brand. The Gen-Z and this place cannot grow together.
Moderator i know your concerns, but these are first hand accounts and not hearsay.
Totally agree with the above comment. On this platform after many years. Found this thread - above msg is to the point. Apart from the left nostril - right nostril specialization in larger offices of the firm there are many more reasons to not join LKS at this point of time. Its too backward an org when it comes to freedom associated with current gen. Me being 10 yrs older could not digest their means. Too much of 'chatai', cheap politics, grapewine, backbiting, promotions based on vested interests, mid level to senior level have their own agendas going on. Toxic culture by the book. The super seniors have done their part and not much interested on what the kids and the senapatis appointed by them are doing. The senapatis have started behaving like the maharajas and are of course of the lowest order. Absolute lack of class. They have just mugged up a few judgments and want to show around how important they are by bashing anyone at their wish - including clients. Many in house counsels who worked in LKS and are now on the other side of the table are made fun of in client-counsel meetings in front of their new colleagues. Interesting !! House is not in order - Chopping of good resources - promoting only the 'obedient' ones. Not allowing good resources to grow - specially if they have their own opinion and the opinion does not matches with that of the managers. Filtered messaging by middle mgmt. across the board - what suits the messenger is passed on - what does not, is supressed. (Messenger has grown - as he/she followed the above methods - Currently 2-3 layers of such people are in the org. - so do not expect an easy repair any soon.) Targeted work allocation: some team members slog and some just do few matters with big billings - at the end of the year/ half year billing is same. Team members are judged on the billings done. There are many other parameters in the HR sheet - though billing is the most important criteria (which is fair from a business perspective). Who does most work is bound to make a few accidents - those will be highlighted - as the person is being targeted. Blunders by the others - even causing crores of losses to the client and client leaving the firm - are cunningly tidied up. Of course gender has a role to play here - but lets keep our eyes and ears closed to that aspect for this discussion. Except a few teams - most are facing the above issues - across the firm - across cities. The above is not 'bhadas' - but well researched, discussed and analyzed view formed! And yes with the change in legal scenario - introduction of GST - large tax focussed firms are going to be less relevant in the future - what played out in the mature economies is bound to happen in India - very soon - say a decade. Those interested can read about the US, EU and Chinese tax firms.
Since its tax you do not have much options too. It is NDA, ELP, Vaish, Khaitan and a few other law firms to jump to. GST/DT people still have some scope since advisory team has CA's and litigation wale can still jump to other places. Rest are screwed. I don't think they have even implemented their revised pay scales, or is it still the same pay for freshers?
Dont go to LKS. I'm ex LKS of 10 years, and recently left coz i couldn't bear the ▮▮▮. If i could go back in time and ask myself to not go to LKS, I would. But since I can't i'm trying to help here.
The only people who can consider going to LKS have to meet all of the following conditions:
1. You want to do tax all your life. I dont know how at 24-25, anyone is capable of making such a life decision. Once you are at tax lks, you cannot work on any other subject ever coz no one else will hire you. Also their other subject areas are meh, and no one in the industry takes you seriously if you want to move laterally.
2. You dont mind being paid terribly low compared to your peers. An Associate Partner here earns less than a Senior Associate of CAM, SAM, Trilegal, erltc.
3. ▮▮▮
4. You ▮▮▮
5. You want to work in a tier 2/3 firm. This is not an overall tier 1 firm but only is known coz of its dominant tax practice.
I know most of you are dying for a PPO. I hope atleast some of you can understand my pain. I dont want you to wast your youth here. You will not be happy. Frankly struggling anywhere else will give you more experience and skills than working here.
I mean, isn’t that the story in most big law firms? I am hoping that i get called in, it is surely a good place to kickstart tier 1 - tier 2 firm career.
They're almost always hiring. Firstly, because they are growing their practice, especially gen corp. Secondly, they have their fair share of attrition.
They have a system called "Factor System". Your monthly salary is not fixed.
The compensation that your contract says, a percentage portion of it is dependent on monthly recoveries. So suppose your salary is 1 lakh, you may only get 80,000 in a month and rest 20000 will depend on how much you were actually able to collect (credited with the firm) in that month out of your expected monthly collection. If you manage 100% only then you get that 20000 but if you dont, you never see that money.
Also they keep that target so high that barring 1 or 2 teams (cyclically) no one meets that collection.
So as a thumb rule, everyone has to discount their on-paper compensation by 20-50%. Yeah that variable percentage of 'factor' keeps increasing with increase in level. Though they dont charge factor system on first years, but its upto them to decide. Also its depressing when you burn the midnight oil to churn out deliverables (you will need to) and then you dont even get your full pay coz the client has not made the payment yet. Oh you may think that we should just charge advance billing. Guess what, seniors hate to do that coz clients are so old and that would be insulting to ask.
Therefore it is expected that apart from being a lawyer in a big firm, you have to be a collection agent. You are expected to call and remind clients to make payments. In the politest of manners, again and again. Every week you would have to allocate some hours for it. Time that could be spent on doing actual work.
And they only tell you all this on the date of joining, when you are too late to make any informed decision.
In my view, the factor system is the most nauseating thing that exists here and only here. I have not come to know of any other firm that does this. Firms usually keep the monthly compensation fixed and only year-end bonuses depend on actual collections (which makes total sense).
So look before you leap guys.
I dont know how to answer the avoidable team question coz if you are in the main teams, they have most politics, but you get to learn by sheer quantity of work you are expected to bill. In the lesser billing teams, life is chiller but moving laterally becomes difficult coz no one in industry treats you as an experienced asset.
Oh btw, firings happen regularly. In higher billing team (if you can't keep up with pace) as well as in lower billing team (if they feel you are not doing anyting).
Didnt expect this much traction. I guess people do care about honest feedback.
...
3. If you are a person who is just a pure hard worker but cannot engage in office politics, you will suffer. I suffered coz being really good at my work i was dumped more and more of it, while my peers enjoyed the perks of better appraisals and bonuses by doing half the work. Their secret ingredient was usually cowering to seniors or worse, bad-mouthing their peers and juniors to the seniors. I saw it happen first hand many times.
4. You cannot be allowed to be a kind and sympathetic mentor. I was reprimanded again and again as being "weak" coz I was not ruthless to my juniors.
...
Also yeah on-point on the culture aspect. This place is just too orthodox even for Millennials like me but we still persisted coz earlier this place used to have a bigger brand. The Gen-Z and this place cannot grow together.
Moderator i know your concerns, but these are first hand accounts and not hearsay.
House is not in order - Chopping of good resources - promoting only the 'obedient' ones. Not allowing good resources to grow - specially if they have their own opinion and the opinion does not matches with that of the managers.
Filtered messaging by middle mgmt. across the board - what suits the messenger is passed on - what does not, is supressed. (Messenger has grown - as he/she followed the above methods - Currently 2-3 layers of such people are in the org. - so do not expect an easy repair any soon.)
Targeted work allocation: some team members slog and some just do few matters with big billings - at the end of the year/ half year billing is same. Team members are judged on the billings done. There are many other parameters in the HR sheet - though billing is the most important criteria (which is fair from a business perspective). Who does most work is bound to make a few accidents - those will be highlighted - as the person is being targeted. Blunders by the others - even causing crores of losses to the client and client leaving the firm - are cunningly tidied up. Of course gender has a role to play here - but lets keep our eyes and ears closed to that aspect for this discussion. Except a few teams - most are facing the above issues - across the firm - across cities. The above is not 'bhadas' - but well researched, discussed and analyzed view formed!
And yes with the change in legal scenario - introduction of GST - large tax focussed firms are going to be less relevant in the future - what played out in the mature economies is bound to happen in India - very soon - say a decade. Those interested can read about the US, EU and Chinese tax firms.
Since its tax you do not have much options too. It is NDA, ELP, Vaish, Khaitan and a few other law firms to jump to. GST/DT people still have some scope since advisory team has CA's and litigation wale can still jump to other places. Rest are screwed. I don't think they have even implemented their revised pay scales, or is it still the same pay for freshers?
The only people who can consider going to LKS have to meet all of the following conditions:
1. You want to do tax all your life. I dont know how at 24-25, anyone is capable of making such a life decision. Once you are at tax lks, you cannot work on any other subject ever coz no one else will hire you. Also their other subject areas are meh, and no one in the industry takes you seriously if you want to move laterally.
2. You dont mind being paid terribly low compared to your peers. An Associate Partner here earns less than a Senior Associate of CAM, SAM, Trilegal, erltc.
3. ▮▮▮
4. You ▮▮▮
5. You want to work in a tier 2/3 firm. This is not an overall tier 1 firm but only is known coz of its dominant tax practice.
I know most of you are dying for a PPO. I hope atleast some of you can understand my pain. I dont want you to wast your youth here. You will not be happy. Frankly struggling anywhere else will give you more experience and skills than working here.
All the best.