Partnership Agreements: it’s not personal, it’s personnel!

Home Articles ADVICE & GUIDANCE Partnership Agreements: it’s not personal, it’s personnel!

Settling up a business or working with people you have a personal relationship is not uncommon: friends, boyfriends, girlfriends, married couples have been working together for years. It makes sense: you are unlikely to fall out; you know a great deal about them; and you trust them, so is there any need to put anything in writing?

In practice, it’s probably even more important to have contracts, policies and procedures in place if you have a close relationship with your employees or business partners. If we take a GP’s practice for example, these are often set up as partnerships between two or more Doctors who know each other well. If a partnership has no written agreement in place, then the default position is found in the Partnership Act 1890 (yes we still use legislation passed in the 19th Century). If there is a falling out between partners, then this legislation allows the partnership to be dissolved without notice and assets can be forcibly sold. It also means that any GMS or PMS contract the practice has will be severed. If a GP subsequently wanted to set up independently, or with different partners, he or she would have to start the whole application process over again.

It is potentially worse if the personal relationship is with an employee. A common practice when you employee a friend or partner is not to give them a contract of employment and allow them to work whatever hours suit them. What happens though if there is a dispute over pay or you want to dismiss them? Well if there are no contracts in place, you would be unable to rely on any code of conduct or company rules to protect you and your business. Also if there is no contract and they bring a claim against you, the employee can be awarded 4 weeks’ salary just for failing to give them a contract. For something so simple, is it worth exposing the business to this kind of risk?


Leave a Comment

Your email address will not be published.

Social Media

Latest Posts

RIDDOR Landing page v x

What are RIDDOR Regulations & What are Employer’s Responsibilities for RIDDOR Reportable Incidents?

Firstly many people ask what RIDDOR means, RIDDOR stands for reporting injuries diseases, and dangerous occurrences. Accidents at work can happen, even with the best …

An Employer Guide to Disciplinary Action and Police Investigations

An Employer’s Guide to Disciplinary Action and Police Investigations

Without wishing to delve too heavily into the current (alleged) political shenanigans, there has been much discussion about the announcement of an investigation by the …

covid vaccine 800x296 1

Your Complete Guide to Mandatory Covid-19 Vaccinations

Earlier this month the government announced that The Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 amendment had been passed by Parliament. The …

working from home

Can employers adjust sick pay for unvaccinated workers?

Can employers adjust sick pay for unvaccinated workers? There has been a lot of media coverage recently about various companies who are reducing sick pay …

working from home

Working from home: FAQs for employers

This week the Prime Minister, Boris Johnson announced the implementation of Plan B of its COVID-19 winter response due to rising numbers of COVID-19 cases …

On Key

Related Posts