Wragge Lawrence Graham & Co

UK 200 2013 position: 25

Partners as workers — the Supreme Court ruling and automatic enrolment for LLPs

By Ian Curry

The Supreme Court decision in Clyde & Co v Bates van Winkelhof has focused attention on the employment status of partners who are members of limited liability partnerships (LLPs). This alert outlines the implications for pensions and automatic enrolment.

The Supreme Court decided that a fixed-salary partner who was a member of an LLP was a ‘worker’ for employment law purposes. As a result, many members of LLPs (who are usually referred to as partners) may be considered workers under the Pensions Act 2008 and are potentially subject to automatic enrolment.

Any LLPs who had relied on the previous decision in the Court of Appeal and excluded their members on the grounds that they weren’t workers will now have to reconsider this position…

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