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Pension Act 2008: Pupil & Barrister Auto-Enrolment Obligations, Study notes of Ethics

This document from the bar council clarifies the application of the pensions act 2008 to pupils and barristers. It discusses the court case edmonds v lawson and its implications for worker status, and advises chambers on ensuring contractual arrangements and policies do not suggest pupil status. It also covers related legislation and case law.

Typology: Study notes

2021/2022

Uploaded on 09/27/2022

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Pupils and Pensions Auto-Enrolment
Purpose: To draw chambers and barristers' attention to their obligations
under the Pensions Act 2008
Scope of application: All practising barristers
Issued by: The Bar Council
Originally issued: August 2015
Status and effect: Please see the notice at end of this document. This is not
“guidance” for the purposes of the BSB Handbook I6.4.
Summary
1. The decision in Edmonds v Lawson provides Court of Appeal authority for the
assumption that pupil barristers do not work under a contract by which they undertake to
do work or perform services personally for their pupil supervisor or for chambers as a
whole. As a result, the Bar Council considers that they pupils will not ordinarily be workers
for the purposes of Part 1 of the Pensions Act 2008 and do not need to be auto-enrolled.
2. The judgment is however fifteen years old and the legal analysis of what constitutes
worker/employee status may have developed over time. A court may take a different view,
depending on the facts of a particular case.
3. Given the risk, individual chambers should ensure that both contractual
arrangements with pupils and policies and procedures reflect arrangements which do not
suggest a pupil has worker status. Chambers may consider obtaining independent legal
advice as to its specific status.
4. Chambers should also keep in mind that ‘pupils’ and ‘pupillage’ are regulatory
terms defined by the BSB Handbook. They do not include ‘third six pupils’, which is a form
of practice that does not have a specific regulatory status as ‘third six pupils’ are for
regulatory purposes barristers with full practising certificates. Chambers with ‘third six’
pupils should also ensure that any contractual arrangements or policies and procedures
reflect arrangements which do not suggest a ‘third six’ pupil has worker status.
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Pupils and Pensions Auto-Enrolment

Purpose: To draw chambers and barristers' attention to their obligations under the Pensions Act 2008

Scope of application: All practising barristers

Issued by: The Bar Council

Originally issued: August 2015

Status and effect: Please see the notice at end of this document. This is not “guidance” for the purposes of the BSB Handbook I6.4.

Summary

  1. The decision in Edmonds v Lawson provides Court of Appeal authority for the assumption that pupil barristers do not work under a contract by which they undertake to do work or perform services personally for their pupil supervisor or for chambers as a whole. As a result, the Bar Council considers that they pupils will not ordinarily be workers for the purposes of Part 1 of the Pensions Act 2008 and do not need to be auto-enrolled.
  2. The judgment is however fifteen years old and the legal analysis of what constitutes worker/employee status may have developed over time. A court may take a different view, depending on the facts of a particular case.
  3. Given the risk, individual chambers should ensure that both contractual arrangements with pupils and policies and procedures reflect arrangements which do not suggest a pupil has worker status. Chambers may consider obtaining independent legal advice as to its specific status.
  4. Chambers should also keep in mind that ‘pupils’ and ‘pupillage’ are regulatory terms defined by the BSB Handbook. They do not include ‘third six pupils’, which is a form of practice that does not have a specific regulatory status as ‘third six pupils’ are for regulatory purposes barristers with full practising certificates. Chambers with ‘third six’ pupils should also ensure that any contractual arrangements or policies and procedures reflect arrangements which do not suggest a ‘third six’ pupil has worker status.

Legislation and case law overview

  1. Concern has been expressed to the Bar Council about whether or not auto-enrolment for pensions applies to pupils under the Pensions Act 2008.
  2. The legislation requires workers to be automatically enrolled in to a pension scheme by their employer, rather than having an option of opting into the scheme.
  3. Section 3 Pensions Act 2008 requires an employer to make arrangements for the auto enrolment of any: “jobholder (a) who is aged at least 22, (b) who has not reached pensionable age, and (c) to whom earnings of more than £10,000 are payable by the employer in the relevant pay reference period …..”
  4. Section 1 Pensions Act 2008 defines a “jobholder” as being:

“(1) … a worker— (a) who is working or ordinarily works in Great Britain under the worker's contract, (b) who is aged at least 16 and under 75, and (c) to whom qualifying earnings are payable by the employer in the relevant pay reference period …”

  1. Section 88(3) Pensions Act 2008 defines a “worker” as being: “… an individual who has entered into or works under— (a) a contract of employment, or (b) any other contract by which the individual undertakes to do work or perform services personally for another party to the contract.”
  2. Section 88(4)-(5) provides further: “(4) But a contract is not within subsection (3)(b) if the status of the other party is by virtue of the contract that of a client or customer of a profession or business undertaking carried on by the individual concerned. (5) For the purposes of subsection (3)(b), it does not matter whether the contract is express or implied or (if it is express) whether it is oral or in writing.”
  3. A similar issue arose in relation to the National Minimum Wage legislation, concerning whether or not this applied to pupils.

16.3.Where the pupil carries out remunerated work for a particular members of chambers so that they are entitled to be paid, those particular members of chambers are to be regarded as the client of the pupil for the purposes of the pupil’s own professional practice. Overall, the pupil was not contracting to carry out work for the chambers or pupil supervisor.

Important Notice

This document has been prepared by the Bar Council to assist barristers on matters of professional conduct and ethics. It is not “guidance” for the purposes of the BSB Handbook I6.4, and neither the BSB nor a disciplinary tribunal nor the Legal Ombudsman is bound by any views or advice expressed in it. It does not comprise – and cannot be relied on as giving – legal advice. It has been prepared in good faith, but neither the Bar Council nor any of the individuals responsible for or involved in its preparation accept any responsibility or liability for anything done in reliance on it. For fuller information as to the status and effect of this document, please refer to the professional practice and ethics section of the Bar Council’s website here.