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Court backs salesman's claim for 13 years of holiday pay | Court backs salesman's claim for 13 years of holiday pay |
(35 minutes later) | |
A UK window salesman who did not receive a paid holiday for 13 years has been backed at the European Court of Justice in his landmark legal battle. | A UK window salesman who did not receive a paid holiday for 13 years has been backed at the European Court of Justice in his landmark legal battle. |
Conley King worked for a sash window firm on a self-employed basis, but was later found to have workers' rights. | Conley King worked for a sash window firm on a self-employed basis, but was later found to have workers' rights. |
In a closely-watched case, the EU court ruled Mr King was also entitled to his untaken leave at the company. | In a closely-watched case, the EU court ruled Mr King was also entitled to his untaken leave at the company. |
Legal analysts said the decision could have significant implications for firms in the so-called gig economy. | Legal analysts said the decision could have significant implications for firms in the so-called gig economy. |
Mr King worked as a commission-based salesman for The Sash Window Workshop between 1999 and 2012. | Mr King worked as a commission-based salesman for The Sash Window Workshop between 1999 and 2012. |
After he was dismissed from the firm, a UK tribunal ruled that Mr King should have been classified as a worker. | |
He also brought a claim for £27,000 of holiday pay he should have received. | |
What is the gig economy? | What is the gig economy? |
In the gig economy, instead of a regular wage, workers get paid for the "gigs" they do, such as a food delivery or a car journey. | |
In the UK, it is estimated that one million people are employed in this type of capacity. | |
Jobs include couriers, ride-hailing drivers and video producers. | |
Workers in the gig economy are classed as independent contractors. | |
That means they have no protection against unfair dismissal, no right to redundancy payments, and no right to receive the national minimum wage, paid holiday or sickness pay. | |
The European court was asked to decide whether EU law allowed him to claim payment for the entire length of his employment. | The European court was asked to decide whether EU law allowed him to claim payment for the entire length of his employment. |
It decided there was no time limit for his claim, a decision which lawyers said opens the door for similar cases. | It decided there was no time limit for his claim, a decision which lawyers said opens the door for similar cases. |
"An employer that does not allow a worker to exercise his right to paid annual leave must bear the consequences," the court ruled. | "An employer that does not allow a worker to exercise his right to paid annual leave must bear the consequences," the court ruled. |
'Bombshell judgment' | |
The case now returns to the UK Court of Appeal for a further ruling. | |
Legal experts said the decision meant companies which routinely use staff on self-employed contracts - such as taxi or delivery firms - could face potentially huge liabilities if that status is later challenged. | Legal experts said the decision meant companies which routinely use staff on self-employed contracts - such as taxi or delivery firms - could face potentially huge liabilities if that status is later challenged. |
James Williams, the barrister who represented Mr King, said it left employers who have miscategorised workers as self-employed, liable for back holiday pay when the workers' employment is terminated. | James Williams, the barrister who represented Mr King, said it left employers who have miscategorised workers as self-employed, liable for back holiday pay when the workers' employment is terminated. |
The head of the IWGB trade union, Dr Moyer-Lee, said the "bombshell judgment" was a "game changer for the so-called 'gig economy'". | |
"The law is now recognising the massive unpaid debt of 'gig economy' companies to their workers and IWGB members will be coming to collect." |