Partners in LLPs can also be "workers"

In the latest twist for the auto enrolment regulations it has now become clear the Partners of Limited Liability Partnerships can be classified as a "worker". This has come as something of a surprise. It came about from a recent Supreme Court case, Clyde and Co and another vs Bates van Winkelhof. Without going in to all the detail, the court found that an LLP Partner could be classified as a worker. Although the case was not about pensions, it has far reaching consequences.

 

All LLPs should now urgently be looking at whether their Partners are affected. There is no single test and not all Partners will necessarily be a worker. It is also retrospective, meaning that if you do find that some of your partners are workers you will need to backdate contributions to your staging date of when they first became eligible. Therefore we recommend you act as soon as possible as the longer you leave it, the more there will be to unravel.

 

Nick Rudd

Corporate Benefits Director

 

Telephone: +44 (0)20 7893 3456

Email: contactus [@] broadstoneltd.co.uk