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Self-employment status - who's next under the HMRC spotlight Self-employment status – who's next under the HMRC spotlight
(about 4 hours later)
The HMRC’s focus on workers’ employment status could shift the spotlight onto other firms with large self-employed workforces. Several firms are already facing action from workers taking their cases to employment tribunals. HMRC’s focus on workers’ employment status could shift the spotlight on to other firms with large self-employed workforces. Several firms are already facing action from workers taking their cases to employment tribunals.
According to one employment expert, the timing of the HMRC intervention against Hermes is important because it follows the government announcement this month of a review of workers’ rights and practices by Matthew Taylor, a former adviser to Tony Blair. An employment tribunal is also considering whether drivers for taxi-hailing tech firm Uber should be recognised as company staff.According to one employment expert, the timing of the HMRC intervention against Hermes is important because it follows the government announcement this month of a review of workers’ rights and practices by Matthew Taylor, a former adviser to Tony Blair. An employment tribunal is also considering whether drivers for taxi-hailing tech firm Uber should be recognised as company staff.
Matt Gingell, an employment specialist at the Gannons, said: “This comes at a time when the government has asked Matthew Taylor to do a review of the law and we are waiting for the Uber judgment, so companies must be a bit concerned about the grey area of status, and whether people they say are self-employed really are.”Matt Gingell, an employment specialist at the Gannons, said: “This comes at a time when the government has asked Matthew Taylor to do a review of the law and we are waiting for the Uber judgment, so companies must be a bit concerned about the grey area of status, and whether people they say are self-employed really are.”
UberUber
The firm uses about 30,000 drivers in London, all of whom are designated as self-employed. In July, two drivers took a case to an employment tribunal arguing that they should be classed as workers, meaning they were entitled to holiday pay and the national living wage. They said that their work was controlled by the firm as they are only told the destination of a job when they pick someone up, and they were not allowed to send another driver in their place – two features of employment. If the ruling goes in their favour, 17 other drivers will also be deemed to be workers and entitled to compensation, and HMRC may decide to take a closer look at the firm. The tribunal’s ruling is due imminently.The firm uses about 30,000 drivers in London, all of whom are designated as self-employed. In July, two drivers took a case to an employment tribunal arguing that they should be classed as workers, meaning they were entitled to holiday pay and the national living wage. They said that their work was controlled by the firm as they are only told the destination of a job when they pick someone up, and they were not allowed to send another driver in their place – two features of employment. If the ruling goes in their favour, 17 other drivers will also be deemed to be workers and entitled to compensation, and HMRC may decide to take a closer look at the firm. The tribunal’s ruling is due imminently.
Uber said the case only involves a very small number of its 30,000 drivers and that it is a technology company rather than a transport provider, working with “driver partners” and offering them flexibility to control how much and often they work.Uber said the case only involves a very small number of its 30,000 drivers and that it is a technology company rather than a transport provider, working with “driver partners” and offering them flexibility to control how much and often they work.
CitySprint, Excel, Addison Lee and eCourierCitySprint, Excel, Addison Lee and eCourier
The four firms are facing tribunal cases brought by cycle couriers working in London who argue they are not really self-employed. Currently, they are classed as “independent contractors”, but say they should be recognised as workers because: they tend to work for one company at a time only; are subject to the control of their managers; and have no say over their rates of pay. One courier, Andrew Boxer, said that he carried a company ID for Excel at all times. “I don’t have any independence as such,” he said. The first case, against City Sprint, will start on 22 November and the other three will follow in the new year.The four firms are facing tribunal cases brought by cycle couriers working in London who argue they are not really self-employed. Currently, they are classed as “independent contractors”, but say they should be recognised as workers because: they tend to work for one company at a time only; are subject to the control of their managers; and have no say over their rates of pay. One courier, Andrew Boxer, said that he carried a company ID for Excel at all times. “I don’t have any independence as such,” he said. The first case, against City Sprint, will start on 22 November and the other three will follow in the new year.
The courier companies say the tribunal claims are unfounded. Excel has previously said its London couriers “operate as independent subcontractors”.The courier companies say the tribunal claims are unfounded. Excel has previously said its London couriers “operate as independent subcontractors”.
DeliverooDeliveroo
The takeaway food delivery service has more than 3,000 riders around the UK on contracts which says that they are self-employed and cannot contest their status. Employment lawyers have dismissed this clause as unenforceable. A strike in the summer over changes to the way riders were paid to deliver food prompted the government to state that workers’ status was determined “by the reality of the working relationship and not the type of contract they have signed”. It also led drivers to join forces to call for better rights. Next week, the Independent Workers of Great Britain union is holding a meeting for Deliveroo riders to discuss how to win better rights and be paid the London living wage of £9.40 per hour if they are based in the capital. The takeaway food delivery service has more than 3,000 riders around the UK on contracts that say they are self-employed and cannot contest their status. Employment lawyers have dismissed this clause as unenforceable. A strike in the summer over changes to the way riders were paid to deliver food prompted the government to state that workers’ status was determined “by the reality of the working relationship and not the type of contract they have signed”. It also led drivers to join forces to call for better rights. Next week, the Independent Workers of Great Britain union is holding a meeting for Deliveroo riders to discuss how to win better rights and be paid the London living wage of £9.40 per hour if they are based in the capital.
Deliveroo has defended its employment terms, saying: “We provide a platform for people to work with us on a freelance basis. This allows riders to work flexibly around another commitment, like studying or other work. We’ve worked with legal experts to design our contracts to reflect that.”Deliveroo has defended its employment terms, saying: “We provide a platform for people to work with us on a freelance basis. This allows riders to work flexibly around another commitment, like studying or other work. We’ve worked with legal experts to design our contracts to reflect that.”
Gig economyGig economy
Michael Newman, an employment lawyer at Leigh Day, said there were other “gig economy” businesses that depend heavily on self-employed workers. “There are other smaller businesses in different sectors, such as cleaning, that tend to go under the radar,” he said. “People who are working for these are likely to face the same issues of no holiday or sick pay, or not earning the living wage.”Michael Newman, an employment lawyer at Leigh Day, said there were other “gig economy” businesses that depend heavily on self-employed workers. “There are other smaller businesses in different sectors, such as cleaning, that tend to go under the radar,” he said. “People who are working for these are likely to face the same issues of no holiday or sick pay, or not earning the living wage.”
Newman said that these companies were unlikely to be too concerned about the latest development at HMRC. “Until they see some kind of enforcement in place it will be business as usual,” he said.Newman said that these companies were unlikely to be too concerned about the latest development at HMRC. “Until they see some kind of enforcement in place it will be business as usual,” he said.