Employment | Salaried Partners & LLPs
Typically, partners in traditional partnerships or members of an LLP share in the profits of the partnership or LLP. However, sometimes LLPs or traditional partnerships hold out certain individuals to be partners, yet pay a salary instead of a share of the LLP’s or partnership’s profits. The taxation of these “salaried partners” and the extent of their employment rights is a complex area on which we advise regularly.
LLPs are hybrid business structures combining the protection of limited liability of private companies with the advantageous tax treatment of traditional partnerships. Widely used by professional services clients, we are seeing a growing number of businesses in other sectors adopt this structure. We advise on and assist with the conversion of an existing business into an LLP and are experienced in providing commercial and HR advice relating to LLPs, as well as tax advice.
Work includes:
advising a Member of an LLP on a career move to a competitor. This involved negotiations both for the terms of his exit, the obligations to be owed by him and his new employer and the new terms of his engagement
advising a number of LLPs on their proposed structures and the status of their proposed members or partners
Related Expertise
Our Team
News & Insights
The much-anticipated Employment Rights Bill has introduced pivotal changes aimed at strengthening worker protections, particularly around collective redundancies and fire and rehire practices.
On 16 September 2024, the Supreme Court ruled on the employment status of part-time referees engaged by Professional Game Match Officials Ltd (PGMOL), a decision with significant implications for tax and National Insurance contributions.
Sign up for our Autumn Employment and Immigration Law Seminar, with Nicholas Lakeland, Victoria Brockley, Marianne Johnson, Victoria Welsh and Firuza Ahmed on Tuesday 10 September 2024.
Following the King’s speech, we now have clarity on the Prime Minister’s legislative programme and the forthcoming Employment Rights Bill.
The results are in! Following 14 years of a Conservative government, the British public have voted for a change. In terms of what this change means for employment law, Labour promised to bring forward an employment bill of rights within its first 100 days of coming into power as part of its “New Deal for Working People”. As of today, that clock starts ticking.
Immigration Partner, Victoria Welsh, and Employment Partner, Nicholas Lakeland, explore the issues that can arise when businesses allow employees to work remotely overseas, in this article written for People Management.
As legislative adjustments in employment law persistently emerge, employers are advised to regularly reassess their contracts and policies to ensure compliance with the evolving legal landscape. We outline the upcoming changes set to take effect from April 2024.
Sign ups are now open for our upcoming Employment and Immigration seminar! Our very own Employment Partners, Nicholas Lakeland and Victoria Brockley, will delve into the latest updates in Employment Law. This will be followed by our Partner and Head of Immigration, Victoria Welsh, as she analyses the recent amendments to UK Immigration Law and the implications on UK businesses.
The significance of diversity in the workforce cannot be overstated, given the potential pitfalls associated with unconscious bias or preconceived notions. Diversity encompasses individuals of varying ages, religions, ethnicities, those with disabilities, and a balance between genders or those who choose not to be defined as belong to either sex.
The Supreme Court handed down it’s judgement which extends the right to seek compensation for underpaid holiday entitlements to police officers and employees of the Police Service of Northern Ireland ("PSNI"). This decision has raised considerable concerns about the proper calculation of holiday pay and cost the PSNI an estimated £30million.
April is always marked as a busy time of the year for employment lawyers and HR professionals having to adjust the increased limits for awards.
Here are some examples of cases where employers have taken disciplinary action regarding an employee’s comments on social media about their employer.
Ahead of the expected changes for employment law this year, we look back at the implications of the cases that took place in 2022, and what we can expect in 2023.
You will have heard that P&O Ferries fired 800 staff with immediate effect in March 2022. Similarly, technology company Meta and social media giant Twitter have laid off thousands of staff in an attempt to significantly reduce costs.
It’s remarkable how often the title ‘director’ is used to describe someone’s position in a business. The title confers a sense of importance which is why it is often used but being a ‘real’ director brings with it a considerable degree of responsibility and potential liabilities, and if this was more widely understood there would be a greater reluctance to so casually use the title.
When advising employees about redundancy exits, it seems many employees are acting under the misconception that their contractual post-termination restrictions will not apply because their termination is by reason of redundancy. This is not correct, as the restrictions will apply even in redundancy terminations. It is worth noting, however, that the circumstances of 2020 may actually mean not all the restrictions are relevant even if they are still applicable.
As we slowly inch our way towards a brave new world post COVID-19 we set out below the employment law issues likely to face employers and employees in the coming months.
The government guidance has been continuously changing and this article is therefore inevitably a general exposition of key features of the scheme and specific advice should be sought in relation to the furloughing of employees.
The review, which was published on 4 November 2019, also concluded that despite the potential for minimum wages to have a negligible or zero effect on jobs, it significantly increases earnings of the lowest paid workers. Nicholas Lakeland, partner at Laytons, comments on the report, saying it will ‘frame the future remit of the Low Pay Commission… and future government policy’.
Employment lawyers and HR teams are well acquainted with the routine dance involved in the negotiation of settlement agreements. However, it is important to note that HMRC has decided to make some changes which will affect some of the steps taken when negotiating exit payments.