The Employment Appeal Tribunal has upheld an earlier ruling that a solicitor who was a fixed-share partner in a Bournemouth law firm is not entitled to seek to claim unfair dismissal from the firm, because he cannot be classed as an ‘employee’.

Martin Tiffin, a former fixed-share partner at Lester Aldridge, had argued that because he was paid a fixed annual share of profits, he was effectively a salaried employee, making him eligible to seek to bring an unfair dismissal claim.

Tiffin said he did not enjoy full partner status because he only received a small annual bonus and had only contributed £6,125 to the partnership, in contrast to the £150,000 contributed by full equity partners.

He also claimed he had only a limited right to be involved in management decisions, and only carried out work that was provided to him by the firm’s partners.

The EAT dismissed the appeal last month, citing clear grounds for concluding that Tiffin was in fact a partner, as he could attend and vote at partnership and member meetings, and had the authority to sign cheques on the firm’s behalf.

Ronnie Fox, principal of City partnership and employment firm Fox, said: ‘There are big national insurance savings to be made when someone is taxed as a partner rather than as an employee. These savings are usually distributed between the firm and the individual, to both sides’ benefit. Mr Tiffin was taxed as a partner, which [implies] he accepted his status as a partner.’