What is a salaried partner?
Partnerships with one or more salaried partners are a common occurrence in the legal world, but what is involved in being a salaried partner, and how will it change your working life?
With the current economic climate in Britain and dwindling profits for many firms, there has been a decreased willingness to share profits and equity. This has seen a rise in the number of salaried partners: partners who receive a fixed salary, rather than a share of the firm’s overall profits. They are often entitled to performance related bonuses or an increased salary, although this is not always the case.
If you work for a legal firm or any other partnership, it is possible you could be offered the chance to become a salaried partner. With this in mind, it is important to be well informed on the responsibilities faced by salaried partners.
Responsibilities of a salaried partner
As a salaried partner, you can take on some of the liability for any wrongdoing or illegal activity by the partnership if you are held out as a partner. As a result of this, it is extremely important that you fully understand the potential implications of becoming a salaried partner. If you are offered a salaried partner position, it is advisable that you obtain legal guidance on the implications.
Becoming a salaried partner is an exciting moment in any career, and a great opportunity to progress. However, there are significant differences to a standard promotion, and it is essential that you consider the offer carefully.
Partnership advice from Ralli
If you need any form of advice relating to partnership law, from who can be a partner, to becoming a salaried partner or even guidance on exiting a partnership, Ralli can help. Call 0161 832 6131 for helpful and fully confidential advice, or use the Contact Us section of the website for an answer via email or a callback.Back to our services