A group of Hermes couriers have won their fight to be treated as workers instead of independent contractors in what was described as one of the most significant victories against exploitation of gig-economy workers.
The couriers were incorrectly classified as self- employed and were entitled to receive the minimum wage and holiday pay, and to reclaim unlawful deductions from their wages.
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Addison Lee is another company which faced defeat in court over its treatment of workers as ‘independent contractors’ without rights to holiday pay or the national minimum wage.
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Another interesting case is concerning Uber. The Tribunal ruled in 2016 that Uber drivers should be treated as employed workers with rights to minimum wage and sick pay. However, Uber were granted the right to appeal but lost its appeal against a ruling that its drivers should be classed as workers with minimum-wage rights.
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Similar verdicts were reached in cases brought against Uber, City Sprint, Excel and eCourier.
So, what is the difference?
A person is generally classed as a ‘worker’ if:
• They have a contract or other arrangement to do work or services personally for a reward (your contract doesn’t have to be written);
• Their reward is for money or a benefit in kind, for example the promise of a contract or future work;
• They only have a limited right to send someone else to do the work (subcontract);
• They have to turn up for work even if they don’t want to;
• Their employer has to have work for them to do as long as the contract or arrangement lasts;
• They aren’t doing work as part of their own limited company in an arrangement where the ‘employer’ is actually a customer or client.
Workers are entitled to certain employment rights.
An independent contractor is a self-employed person who provides certain services to a second-party called the principal, or to a third -party on behalf of the client. An independent contractor is not under the control, guidance, or influence of the client, and unlike an employee, does not owe a fiduciary duty.
Why Summerfield Browne?
Summerfield Browne Solicitors will aim to reach a final settlement, that will give you and your family, the compensation you need and deserve. Our team of specialist lawyers will robustly negotiate on your behalf, and endeavour to obtain the best settlement for you as soon as possible.
