Partner Status and Employment Law Rights

When it comes to employment rights, working in a partnership is not always as straightforward as it might seem. We are experts in partnership status and can advise you on the different types of set up and the associated rights.

The question of a partner’s status, which essentially means employed or self-employed, usually comes up for tax and employment law purposes.

It can sometimes be difficult to work out whether a partner is self-employed or employed.

Free Initial Telephone Discussion

Contact us today for a no-obligation, free initial discussion about your circumstances. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will give you a call back as soon as possible.

Different Types of Partners

Many partners and LLP members will have additional rights beyond those set out in any partnership or LLP agreement. Depending on the way in which they have been engaged and how they have worked, they may be employees, with associated employment rights.

  • Salaried Partner or Income Partner – signifies a partner who is employed by the firm under an employment contract and paid a salary subject to PAYE in the UK.
  • Equity Partner – implies a partner who is self-employed.
  • Consultant – can indicate a partner employed by their own Personal Service Company (PSC)

The tax and employment rules are constantly changing so you should get in contact for the most up to date advice.

In traditional partnerships, partners tend to fall into one of two groups, equity or salaried partners. An appropriate equity partner will be remunerated on the basis of the profits of the partnership and will participate in the management of the firm. By contrast, a salaried partner is paid a fixed salary and sometimes has little say in the management of the business.

A salaried partner may be depicted as a ‘partner’ but in reality, they are an employee.

Employment Claim Consideration

When entering into a partnership you should be aware of the rights of any partners. There is a lot to take into consideration and by being aware and setting out clear guidelines, you can help avoid potential issues.

How We Can Help

We understand that any partnerships can be complex. Using our experience and wealth of knowledge, we are able to offer expert advice on all partnership matters.

We are committed to providing you with a first-class service and helping guide you through the process.

We are able to clearly explain the legal issues and provide open, honest and professional advice.

How to Contact our Solicitors

To speak to our solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online contact form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

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