Mark Whitcombe unravels the rights of fixed share partners
The recent judgment of the Court of Appeal in Tiffin v Lester Aldridge LLP [2012] EWCA Civ 35, [2012] All ER (D) 37 (Feb) clarifies the law governing the employment status of “fixed share” partners in limited liability partnerships (LLPs) and is equally relevant to cases involving conventional partnerships. It is well known that in order to bring claims of unfair dismissal or breach of contract in an employment tribunal the claimant must establish that he falls within the definition of “employee” in s 230(1) of the Employment Rights Act 1996 (ERA 1996). Tiffin is now the starting point for any consideration of the employment rights of LLP members, and is the first time that the Court of Appeal has considered s 4(4) of the Limited Liability Partnerships Act 2000 (LLPA 2000).
The applicable law
Section 4(4) of LLPA 2000 is badly drafted: “A member of a limited liability partnership shall not be regarded for any purpose as employed by
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