The continuum elasto-plastic theory of layered composites is presented. The composite consists of two elasto-ideal plastic constituents. The associated flow rule is assumed to be valid for both constituents. The starting point of the presented considerations is an elastic state described by structural relations, i.e. relations between microstresses (-strains) and macrostresses (-strains). The behaviour of the composite in the case when one of the constituents becomes plastic, as well as the global yield conditions are investigated. The presented theory is illustrated by numerous examples for the case when both constituents obey the Huber-Mises yield condition, and for particular stress states and loading paths.