Summary and implications
On 23 May, I reported that, as a result of a ruling of the
Supreme Court (Clyde & Co LLP v Bates van Winkelhof),
Limited Liability Partnerships (LLPs) may be required to
automatically enrol their partners into a qualifying pension
scheme.
The Pensions Regulator has now confirmed to us that LLPs should
all be assessing whether any of their partners are
"workers" and, if so, they will be subject to the
automatic enrolment legislation. There is no single factor
indicating whether a partner is a "worker" but relevant
considerations include integration within the organisation and
whether they provide their services exclusively to the LLP. It
seems likely that many partners within professional service LLPs
(and elsewhere) are likely to be "workers". However,
partners will only have to be automatically enrolled if they
receive "qualifying earnings" (which includes salary,
wages and commission but not genuine profit share). If they are
"workers"
