Employees and employers are protected by statutory rights. These rights have been approved by parliament and are written into British law. The Employment Rights Act 1996 is the relevant act which sets out the statutory rights of employees and employers. One example example of a statutory right would be holiday allowance.


LLP Members are protected by contractual rights. These are what protect the agreements and contracts we enter into on a day-to-day basis and are legally binding on each of the parties.  For example, something as everyday as buying lunch from a supermarket creates a contract between an individual and the supermarket.

This is relevant to LLP members because, by becoming an LLP member, the individual agrees to vary their employment with the Ltd company and join the LLP as a partner.  The new LLP member has therefore agreed to alter their statutory rights as an employee and engage with the LLP in a new agreement as a partner which is protected by contractual rights.

Each LLP Member is entitled to an award of compensation for agreeing to vary their statutory rights. This compensation amount is then used to form their capital contribution into the LLP.


If you have further questions, please don’t hesitate to get in touch!

ben crampin


Ben’s been here pretty much since the get-go and, as such, has been instrumental in growing the business into what it is today.
He’s passionate about, in his words, ‘helping people and businesses that are just constantly being taken advantage of’ by providing affordable advice and support with an eye to ‘levelling the playing field’.
Ben looks forward to the day when automation will, once and for all, fumigate the fear and confusion caused by oppressive bureaucracy and strongly believes that ‘technology holds the solutions to the problems we’re trying to solve’.
Furthermore, he can see that technology will, in time, provide the scalability required to help a theoretically limitless number of SMEs survive and thrive against the odds.
Ben doesn’t think much of government agencies and he doesn’t suffer fools; two points that aren’t always mutually exclusive.