Withholding 15-20% of the bonus of associates till August (without paying any interest) was not enough for the firm that they have now decided to effectively pass on out of pocket expenses to associates. The firm cancelled its Uber subscription. Now as per their new reimbursement policy, all out of pocket expenses, including cabs, late meals, etc., shall be reimbursed to associates only when the client actually pays it. We have been told that partners can ask for advance from clients for out of pocket expenses. It is sort of absurd for any partner to ask for advance for such out of pocket expenses unless it is substantial in nature. Also, there is no clarity as to what happens if the client does not pay or if the associate leaves the firm before the client pays. In substance, the associate is out of pocket.

Clients are increasingly refusing to pay for your lavish dinners at their cost. I am aware of associates who would never order food from high end restaurants but the minute a client is paying they want to order from places even their partners have never tried. Especially after COVID, you are expected to either eat at home and work or get food from home. The good old days of extracting money from clients for these purposes are a thing of the past- clients are aware that even first year associates get paid much more than the other professionals. Clients are also increasingly avoiding travel unless absolutely essential. Also as a reputed firm it’s embarrassing that attorneys are asking money for their meals from their clients.

Agree that cab expenses should be sponsored by the firm but partners should assess whether associates are wasting whole day and then sitting late. I know of some attorneys, even at partner level who start their day late, socialise like it’s their last day at work and then sit till late, then again come late the next day.. it’s high time we come across as dignified respectable professionals.

Bonus retention does seem unfair.

Partners are booking cabs from firm with double the amount to be picked up from the houses and be dropped to the court and then dropped back home!

Associates are picking up bags from office and paying for cabs and going to the office and buying water bottles for the partners to drink and then paying office boys 5000 to do the filing!

A joke?

When you become a partner you will get clarity.

I know of a certain individual who would regularly order butter chicken and other expensive food and the restaurant bills would be paid by his equity partner or the client. Now that he has been made EP, he refuses to sponsor even evening snacks for his small team. Aaatte dal ka bhav pata chal gaya hai

Fact that they don’t have enough working capital to fund associates’ OPEs should be concerning for anyone who wants to a partner. If they were trying to solve for matter partners not fully recovering OPEs on their files, it should be adjusted against that partner’s profitability - same as we do for discounts or haircuts on standard rates - and not mess up your associates’ cash flows.

Lala firms are always penny wise and pound foolish.