The Court of Appeal has held in Clyde & Co LLP v Bates Van Winkelhof that on the facts in that case a member of a LLP is not a ‘worker’ for the purposes of section 230(3)(b) of the Employment Rights Act 1996 (commonly known as ‘a limb (b) worker’).
What does this mean?
A member of an LLP who, if it had not been registered as an LLP would have been a partner under the Partnership Act 1890, will be unlikely to be either an employee or a limb (b) worker. This is because there must be a degree of subordination in the relationship which is lacking in the case of partners who carry on business in common with a view to profit. However, if there is a clear degree of subordination between a member of an LLP and other members of the same LLP it will be likely that the former will be capable of being an employee or worker, and thus benefit from the statutory protections that follow.
What should employers do?
Businesses, including partnerships, which are unsure of the employment status of someone who works for them should take specific legal advice.