Tiffin v Lester Aldridge LLP: Fixed Share Partner not an employee

The Court of Appeal has confirmed that, as a fixed share partner and member of law firm Lester Aldridge LLP, Mr Tiffin was not an employee. The decision was made on Mr Tiffin’s appeal against a decision in the Employment Appeal Tribunal (EAT). The Court of Appeal noted that, under the membership agreement of the LLP, fixed share partners contributed to capital, had a share in the profits, had prospects of a share in any surplus assets on a winding up, and had a voice in the management of the LLP, in the same manner as equity partners, the only difference being the degree of their respective rights and obligations. It noted that these factors did not apply to salaried partners at the LLP and therefore the real distinction was between equity / fixed share partners and salaried partners. A full briefing note will be published shortly. In the meantime, please contact Richard Monkcom, Head of Druces’ Employment team for more information