Many partners and LLP members will have additional rights beyond those set out in any partnership agreement or LLP agreement.
For example, depending on the way in which they have been engaged and how they have worked, they may be employees, with associated employment rights.
Alternatively, they may be “workers”. This is a status between employment and self-employment and has various associated rights, for example, not to have deductions made from pay, to be included in pension auto-enrolment arrangements and not to be discriminated against.
The rights of workers, as compared to employees, are summarised in the table that can be found here (PDF).
The recent Supreme Court decision of Clyde & Co LLP v Bates van Winkelhof confirmed that most LLP members will be workers and we regularly advise on the impact of this decision on LLPs.
We also provide strategic advice on how to achieve the exit of a partner or LLP member on the best possible terms.
This includes the tactics of negotiation and consideration of non-financial aspects (in addition to financial terms) including timing, dealing with capital and tax reserve accounts, announcements, references and outplacement support.
Recent examples of work in this area include:
- Acting for full equity and fixed share members of a major international law firm in connection with their departures, including negotiating terms and advising on all aspects of their departures
- Advising on the best way of dealing with the departure of a group of partners from a large law firm to join a competing business (team move)
- Assisting various fixed share members of various top 20 law firms in relation to the termination of their LLP memberships
- Advising various major employers on worker status and its impact on their workforces, including dealing with holiday pay, disciplining and removing workers and the auto-enrolment of workers
If you would like assistance in relation to dealing with LLP members, partners or worker status, please contact a member of our employment team.
How We Can Help
A member of our specialist team will be happy to help.
To discuss Partnership and LLP Issues issues, please either use the contact form on the right, email us at email@example.com or call us today on +44(0)161 941 4000 to speak to a member of our team.