Worker status for LLP Partners & Holiday Pay

Worker status for LLP Partners

Yesterday the Supreme Court (SC) handed down their judgment in the case of Clyde and Co LLP and anor v Bates van Winkelhof.  The decision has potentially far reaching consequences for Limited Liability Partnerships (LLP) because the SC held that Partners in an LLP could be workers for the purposes of the Employment Rights Act 1996.  As well as giving protection from detriment for whistleblowing, which was the basis for this case, this would also give LLP Partners the right to holiday pay, national minimum wage, working time rights and pension autoenrolment.  

Click here to read the judgment.

Holiday Pay

The Court of Justice of the European Union (CJEU) this morning issued their ruling in the case of ZJR Lock v British Gas Trading Limited. The case concerned whether or not Mr Lock’s holiday pay should be calculated so as to include his commission payments.  The CJEU decided that ‘where a worker is paid commission calculated on the basis of the sales that they make, that commission must also be included in the calculation of the holiday pay’.  This decision continued the theme of recent case law on holiday pay which is that where payments made to the worker are linked intrinsically to the performance of the tasks which the worker is required to carry out under his contract, these must be included in the calculation of holiday pay.  

Click here for the press release and here for the full judgment.