Corrs Chambers Westgarth has implemented a firm-wide salary freeze due to signs of a "structural shift" in the legal market and a challenging economic climate.

An internal email that the firm's CEO John Denton sent to Corrs Sydney staff on Monday at 4pm explains further. "This year it is clear that the Consumer Price Index is negative and that salaries in the legal market will not be increasing in the 2009/10 financial year. Therefore, the Corrs Operating Committee has decided that annual salary increases will not be made this year," he said.

There will be some exceptions, namely staff promotions to special counsel on 1 July 2009, and senior associate on 1 January 2010 will still receive a pay rise.

The decision is unrelated to performance and not expected to impact on staff career progression. "The performance development process will continue as usual and the firm remains committed to professional development," he said.

A briefing is expected to be held at the firm's Sydney office on Friday 29 May at 1pm to further discuss the salary freeze and provide a general market update.

Corrs is the latest to announce a salary freeze, following similar statements by Mallesons Stephen Jaques, Clayton Utz, Allens Arthur Robinson and Freehills.