Implications for LLP members given worker protection
By Jacqui Piper
The Supreme Court ruling in the case of Clyde & Co LLP v Bates van Winkelhof means that members of limited liability partnerships (LLPs) now have certain quasi-employment protections and may need to be automatically enrolled into a pension scheme.
When LLPs were established in 2000 HMRC operated on the basis that members of LLPs were self-employed and they were taxed on that basis. HMRC challenged this position and, from 6 April 2014, LLP members who receive a salary are required to be treated as employees for tax and NI purposes. The position regarding LLP members who are not salaried remained unchanged.
In the Clyde & Co LLP case, Ms Bates van Winkelhof was removed from an LLP partnership allegedly as a result of her ‘blowing the whistle’ having reported alleged criminal activity. The case considered whether Ms Bates van Winkelhof was a ‘worker’ for the purposes of the Employment Rights Act 1996 and therefore able to bring claims for detriment under the whistleblowing regime and discrimination…
Click on the link below to read the rest of the Shoosmiths briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
Case highlights the importance of intercreditor agreements.
The European Commission has announced that it had used its fast-track settlement procedures to investigate and impose fines in respect of a parking heater cartel.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…