LLP Member is a "worker"

In the keenly awaited decision in Clyde & Co v Bates van Winklehof the Supreme Court has held that a member of an LLP can be a worker and is, therefore, entitled to protection under whistleblowing legislation.

The case involved an equity partner of Clyde & Co who was removed from the partnership and brought subsequent claims of whistleblowing and sex discrimination. At first instance, the Employment Tribunal held that it did not have jurisdiction to hear the claimant’s claims. This judgment was appealed and the case subsequently made its way through the court system, reaching the Supreme Court.

A worker is a category of individual which sits “in between” that of employee (who is afforded most employment rights) and the self-employed (who have relatively little employment rights). A worker benefits from some employment rights e.g. protection from discrimination and whistleblowing detriments, but not others e.g. straightforward unfair dismissal rights (e.g. where there is no element of discrimination).

The case has now been remitted to the Employment Tribunal which will consider the case on its merits.

Comment

This is the first case to test whether a member of an LLP will be a worker. The ruling will have wide implications for LLPs, whose members are now confirmed to receive the full protection of the law in relation to workers.

LLPs will need to carefully consider its policies and procedures in respect of such individuals. Particularly as, given the high level of earnings of some members, any such claim brought against an LLP by one of its member would no doubt have considerable cost implications.