Stephenson Harwood gives staff choice to work fully from home at a financial cost

Employees at the international law firm Stephenson Harwood have been offered the opportunity to work entirely from home on a permanent basis—but with a 20 per cent reduction in salary. The policy applies to workers who prefer a fully remote setup, as opposed to the company’s existing hybrid model, which allows up to two days of remote work weekly.

The London-based firm, which employs over 1,100 people across offices in Europe, Asia and South Korea, confirmed the arrangement to The Independent. Industry reports suggest that newly-qualified lawyers at the firm typically earn around £90,000 per year, meaning a potential loss of about £18,000 for those opting for the reduced pay route.

A company spokesperson explained that the policy is not targeting junior staff and anticipated that few employees would choose this path. They added: “For the vast majority of our people—and the candidates we speak to—our hybrid working policy works well. Like so many firms, we value being in the office regularly while also offering flexibility.”

The 20 per cent pay reduction is intended primarily for employees who have relocated from high-cost cities such as London and are no longer required to commute. The firm noted that during the pandemic, some lawyers were recruited from areas outside London, often with different pay packages, as they were fully remote with expenses for travel and accommodation covered when necessary.

Stephenson Harwood also highlighted the concept of location premiums, which are added to London salaries but may no longer apply if workers live elsewhere. These location premiums have been under scrutiny since the pandemic, with uncertainty about whether other law firms may follow similar approaches.

While some firms have enticed employees back to offices through perks—like Hogan Lovells’ recent two-day puppy office initiative—remote working continues to divide opinion. UK Prime Minister Rishi Sunak recently questioned whether working from home has impacted employee productivity, although reports from Indeed suggest workers prefer the flexibility of remote options.

Despite debates, the national workforce has shown increased productivity during periods of remote work. Data from the last quarter of 2021 demonstrated output above pre-pandemic averages, highlighting the evolving nature of work arrangements in the post-pandemic landscape.