Salaried Partner Agreement for the United Kingdom

Salaried Partner Agreement Template for England and Wales

A Salaried Partner Agreement is a legally binding contract governed by the laws of England and Wales that establishes the terms and conditions of appointment for a salaried partner within a partnership or LLP. This document outlines the rights, responsibilities, remuneration, and obligations of both the partnership and the salaried partner, including provisions for profit sharing, management duties, restrictive covenants, and termination conditions. It serves as a crucial document in defining the hybrid position between traditional partnership and employment.

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What is a Salaried Partner Agreement?

The Salaried Partner Agreement is essential when appointing individuals to partner-level positions while maintaining elements of traditional employment relationships. Used extensively across professional services firms in England and Wales, this document bridges the gap between full equity partnership and employment status. The agreement typically includes comprehensive provisions covering remuneration structures, voting rights, professional obligations, and post-termination restrictions. It's particularly relevant for growing firms looking to incentivize senior professionals without offering full equity partnership status.

What sections should be included in a Salaried Partner Agreement?

1. Parties: Identification of the partnership entity and the salaried partner

2. Background: Context of the appointment and nature of the partnership

3. Definitions: Key terms used throughout the agreement

4. Appointment and Status: Terms of appointment and clarification of salaried partner status

5. Duties and Obligations: Core responsibilities and commitments of the salaried partner

6. Remuneration: Salary, bonus, and other financial entitlements

7. Working Hours and Leave: Expected working patterns and holiday entitlements

8. Confidentiality: Protection of firm's confidential information

9. Termination: Circumstances and process for ending the agreement

What sections are optional to include in a Salaried Partner Agreement?

1. Intellectual Property: IP rights assignment and protection - include when IP creation is part of the role

2. International Assignments: Terms for working in other jurisdictions - include for international partnerships

3. Client Development: Expectations regarding business development - include for client-facing roles

4. Performance Metrics: Specific targets and KPIs - include when performance-based compensation is included

What schedules should be included in a Salaried Partner Agreement?

1. Schedule 1 - Remuneration Details: Detailed breakdown of compensation structure

2. Schedule 2 - Restrictive Covenants: Post-termination restrictions and non-compete clauses

3. Schedule 3 - Partner Benefits: Details of benefits package and entitlements

4. Appendix A - Firm Policies: Key firm policies applicable to salaried partners

5. Appendix B - Performance Criteria: Detailed performance expectations and assessment criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Partnership Act 1890: Fundamental legislation governing partnerships in England and Wales, defining basic partnership principles and relationships between partners

Limited Liability Partnerships Act 2000: Legislation governing LLPs, relevant if the partnership is structured as an LLP

Employment Rights Act 1996: Key employment legislation covering basic employment rights, particularly relevant as salaried partners often have hybrid employment status

Equality Act 2010: Comprehensive anti-discrimination legislation protecting individuals from discrimination based on protected characteristics in the workplace

Working Time Regulations 1998: Regulations governing working hours, rest periods, and annual leave entitlements

National Minimum Wage Act 1998: Legislation ensuring minimum payment requirements are met, though less commonly applicable to salaried partners

Employment Relations Act 1999: Legislation governing various aspects of employment relationships and workplace rights

Income Tax (Earnings and Pensions) Act 2003: Tax legislation relevant to the treatment of salaried partner remuneration and benefits

UK GDPR: Data protection regulation governing the processing of personal data, including partner and client information

Data Protection Act 2018: UK's implementation of data protection requirements, complementing UK GDPR

Financial Services and Markets Act 2000: Regulatory framework for financial services firms, applicable if the partnership operates in regulated financial sectors

Copyright, Designs and Patents Act 1988: Legislation protecting intellectual property rights, relevant for partnership's IP assets

Trade Marks Act 1994: Legislation governing trademark protection, relevant for partnership's brand and IP

Competition Act 1998: Legislation relevant to restrictive covenants and competition law compliance

Health and Safety at Work etc. Act 1974: Legislation ensuring workplace safety and health requirements are met

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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