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ARTICLE · 09 SEPTEMBER 2014

LLP Members As "Workers"

Wragge Lawrence Graham & Co
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LLP members who have in place HMRC protections in relation to their accumulated pension funds will need careful management to avoid breaching their protections.

United KingdomEmployment and HR
Yvonne  Gallagher
Yvonne  Gallagher

The recent Supreme Court decision in the case of Bates Van Winkelhof v Clyde & Co concluded that members of limited liability partnerships (LLPs) who provide services to the LLP are "workers" for the purposes of the Employment Rights Act. This means that they gain the protection of a number of statutory provisions which apply to employees, even though they are not in fact employees.

LLP members have, therefore, as a result of the judgment acquired both individual rights, the key ones of which are set out below and, collectively, a set of obligations to members of the LLP.

The definition of "worker" contained in the Employment Rights Act (ERA) and a number of other employment statutes, within which LLP members are now held to, applies to the following rights:

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