Law firm partner’s profit share allocation was a reasonable exercise of discretion
Partners and LLP members are (to a greater or lesser extent) part-owners of, and co-venturers in, the business, rather than merely serving it. As a result, true partners and LLP members are not employees and do not have certain rights, such as the right not to be unfairly dismissed. However, they do have some of the rights that are afforded to workers, such as the right not to be discriminated against on grounds of a protected characteristic (age or sex, for example) and rights associated with the protection of whistleblowers.
In some cases, people are held out to the external world as partners, but in reality they are salaried employees, with all associated employment rights. Hybrid arrangements such as fixed share or junior equity partners can further complicate the position.
Kingsley Napley has extensive experience in advising professional and financial services firms (including law and accountancy firms and fund managers) and their partners/members on partnership/LLP issues and in helping them navigate through what are invariably very sensitive and often complicated issues.
If you have any questions or require partnership advice, please call or email our partnership specialists.
Partner and Head of Department
They are able to address wider employment, criminal, defamation and commercial litigation issues, which makes them very effective as a firm able to deal with complex multi-issue disputes."
Legal 500 UK, 2020
Kingsley Napley LLP leverages its ‘very strong employment capability’ to advise individuals and partnerships on partner moves as well as employment status issues."
Legal 500 UK, 2016
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