The latest judgment overturns earlier rulings which excluded partners in LLPs from whistleblowing legislation, on the basis that they are not ‘employees’. It follows a three-year legal battle involving Krista Bates van Winkelhof, a former partner at law firm Clyde & Co, who wanted to take a complaint against the firm to an employment tribunal.

Bates van Winkelhof alleged that she was expelled from firm after she blew the whistle on the managing partner of the Tanzanian associate firm, following his admission that he paid bribes to secure work and to secure the outcome of cases. She had also recently announced her pregnancy. 

Bates van Winkelhof maintained that her former firm had sought to prevent her claims of whistleblowing from being heard by an employment tribunal. Clyde & Co had argued that as a partner in the firm, Bates van Winkelhof could not be treated as a worker and so had no protection when she was dismissed.

Overturning an earlier Court of Appeal judgment, the Supreme Court  has now held that members of LLPs are 'workers' for the purpose of employment legislation and therefore have the same protections as employees if they have 'blown the whistle' at work.  Bates van Winkelhof’s claim will now be heard in the employment tribunal in September 2014.

Darren Isaacs, partner at GQ Employment Law said: ‘Large law firms and accountancy firms with international affiliates could be at risk of facing whistleblowing claims in the UK employment tribunal from partners at local offices in countries with a completely different employment culture from the UK. This has the potential to cause a significant headache to management teams.

‘Lots of accountancy, legal and other professional services firms will be analysing this case very closely because of the potentially far reaching consequences of the court’s decision.’

The case has far-reaching implications for accountancy firms.

The case has far-reaching implications for accountancy firms as it gives partners a new right to protection under UK whistleblowing legislation.

Joanna Blackburn, head of employment at Mishcon de Reya, who took on Bates van Winkelhof’s case, said: ‘We are delighted that the UK Supreme Court has endorsed our view that the law does protect Partners in LLPs.

'Partners are the people most likely to become aware of wrongdoing in LLPs but risked being at the greatest disadvantage with respect to protection. High profile collapses like Enron and Arthur Andersen demonstrate why we need partners to speak out if they spot wrongdoing.

'It is in everyone's long-term interests for partners to have the same whistleblowing protection that all other employees already enjoy.’