Q&As

Can a member of an LLP be an employee of the LLP as well? The member and the LLP both accept that NICs will need to be paid for the employee.

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Published on LexisPSL on 30/08/2018

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Can a member of an LLP be an employee of the LLP as well? The member and the LLP both accept that NICs will need to be paid for the employee.
  • Employment law—status
  • HMRC—status

Can a member of an LLP be an employee of the LLP as well? The member and the LLP both accept that NICs will need to be paid for the employee.

There is a distinction to be made between an individual’s status for the purposes of employment law, and an individual’s status for the purposes of HMRC.

Employment law—status

An individual’s status for the purposes of employment law is important because it determines the rights and protections they have at work. Only persons with the status of 'employee', for example, can claim unfair dismissal, maternity leave and redundancy rights. Not all people who work for others are considered to be employees; some may instead be workers (who have a different set of employment rights), or independent contractors.

When it comes to the status of LLP members for the purposes of employment law, the position is discussed fully in Practice Notes:

  1. Employee status—Partner status and members of limited liability partnerships (LLPs)

  2. The nature of a general partnership and its legal framework—Partners and employee/worker status

As explained in these Practice Notes, the Supreme Court judgement in Bates van Winkelhof v Clyde & Co LLP means that when it comes to determining the employment status of LLP members, whatever the position would be were the LLP members to be partners in a traditional partnership, then that position is the same in an

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