Supreme Court ruling means partners in an LLP may need to be automatically enrolled
The Supreme Court has ruled that a fixed-salary partner who was a member of a limited liability partnership (LLP) was a ‘worker’ for employment law purposes. This means that many members in LLPs (commonly referred to as partners) may now be entitled to benefit from the legal rights and protections associated with worker status, including the right to be automatically enrolled.
This decision has significant implications for LLPs, which will now have to make an assessment of whether they think their members are ‘workers’ in light of the Supreme Court’s decision. If some or all members are workers, and meet the other eligibility criteria for automatic enrolment, LLPs will need to make arrangements for such members to be automatically enrolled into a qualifying workplace pension plan. They will also need to review the other employment law rights and protections to which the relevant members are entitled.
The decision of the Supreme Court in the case of Clyde & Co v Bates van Winkelhof is the first to address the employment status of a member within an LLP…
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