In our November 2016 issue we reported on the case of the Uber cab drivers.
Two Uber drivers brought a claim against Uber saying that it was acting unlawfully by not paying holiday pay or sick pay and that they should be paid the National Living Wage. The drivers won their claim in the Employment Tribunal.
The term 'gig economy' is likely to be a buzz word of 2017. The gig economy describes a working environment where temporary positons are common and organisations contract with independent workers for short term engagements.
Those living in large cities will be familiar with the sight of the courier on the bike delivering goods. A well-known delivery company is City Sprint and a person working for the company has just won her employment Tribunal case. She argued that she should be classified as a 'worker' rather than as self-employed and the Tribunal agreed. As a result, she would be entitled to basic rights including holiday and sick pay and the national living wage.
As is often the case in such situations, City Sprint is said to be 'disappointed' and an appeal my follow.
The result only affects the rights of this particular employee, but is another indication of the courts willingness to recognise the employed status of many people in this gig economy.
Any organisation employing people on a freelance basis should look at their contracts of employment and their pay arrangements to ensure that they do not fall foul of similar claims.
To discuss this or any employment related issue, contact us.