There have been two significant decisions in recent days, one regarding Limited Liability Partnerships (LLPs) and the other, holiday pay.
In the case of Clyde & Co LLP v Bates van Winkelhof, the Supreme Court has held that Members of an LLP are "workers" for the purposes of employment protection. Whilst not enjoying as fulsome rights as employees (in particular the right not to be unfairly dismissed) workers do have rights including:
- Protection from any detrimental treatment following whistleblowing
- Statutory holiday and rest breaks under the Working Time Regulations
- Pension auto enrolment
The European Court of Justice has ruled that, in calculating holiday pay, an employer must include commission earned by the employee. The Court did not express a view as to how this was to be done leaving that for National Governments to consider. Most likely an averaging exercise would have to be undertaken.
Employers who include commission as a substantial element of pay may need to look at this carefully and their holiday arrangements.
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