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Should LLP members be protected by whistleblowing legislation?

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The Supreme Court hearing in Clyde & Co LLP and another v Bates van Winkelhof will take place on 24 March 2014. This is the first case to test whether a limited liability partnership (LLP) member can be a worker and could create a legal precedent by giving partners protection under whistleblowing laws.

The dispute involves a former equity partner of law firm Clyde & Co LLP who was seconded to work for Ako Law, Clyde’s association law firm based in Tanzania. She alleges that she was expelled from the law firm’s partnership after ‘blowing the whistle’ on the managing partner at Ako Law, who had admitted to paying bribes in order to secure work. She subsequently brought claims of whistleblowing and unlawful sex discrimination in the employment tribunal.

In regard to Ms Bates van Winkelhof’s whistleblowing claim, the employment tribunal held that it did not have jurisdiction to consider it on the grounds that she was not a worker. She appealed to the Employment Appeal Tribunal, which overturned the tribunal’s decision, ruling that she was a worker. However, the Court of Appeal then allowed Clyde & Co’s subsequent appeal on Ms Bates van Winkelhof’s worker status, meaning that she was unable proceed with her whistleblowing claim.

The Court of Appeal’s decision was significant for LLPs and LLP members. It confirmed that LLP members who would have been partners under a general partnership do not benefit from the range of statutory rights available to workers, such as whistleblowing protection, paid annual leave and auto-enrolment into a pension scheme. Further details are here.

However, this could all change if the Supreme Court sides with Ms Bates van Winkelhof.


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