LLP Members May Have Employment Rights

A recent tax case decided at the Supreme Court held that a fixed share equity member of an LLP was a 'worker' within the meaning of Employment Rights Act 1996 s.230(3)(b) and, as such, they were entitled to claim the protection of its whistle-blowing provisions.

The court held that this does not conflict with the Limited Liability Partnerships Act 2000 s.4(4).

Following the decision, it is possible that members of LLPs, in particular where the LLP provides professional services, may be able to benefit from a whole range of rights normally given to employees including paid annual leave, working time limits, pension autoenrolment, protection against whistleblowing and not being treated unfavourably due to part-time status.