Wednesday 1 February 2012

Fixed Share Partner Not an Employee

Is a fixed share equity partner in an LLP an 'employee'? No, says the Court of Appeal in Tiffin v Lester Aldridge LLP.

Upholding the EAT's decision, the Court held that Mr Tiffin had entered into a partnership agreement with other partners at Lester Aldridge as a fixed share equity partner. Upon conversion to LLP status, he had remained such a fixed share partner, with partial involvement in decision making and a very small share of the firm's profits.

The employment tribunal held that such an arrangement was not a sham, and was quite inconsistent with an employer/employee relationship. The Court of Appeal rejected the arguments that the ET judgment was perverse, describing Mr Tiffin's position as "an impossible one".

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