It’s not often that Employment Tribunal decisions headline the news – but they did on Friday in the UBER judgement.
What this is essentially about is whether UBER drivers are workers, employee or self-employed. UBER claim they are self-employed, some drivers are claiming they are employees. The difference is important in terms of the employment rights that come with the classification. Being self-employed brings no sense of employment rights. Being a worker brings rights to the National Minimum Wage, paid holidays and other benefits. Being an employee brings worker’s rights plus wider employment protection. This is a simplistic description of the difference – a lot more lies behind this.
The judgement of the Tribunal is that in a test case two drivers were found to be workers. While this is ‘only’ an Employment Tribunal decision, and it can be appealed - and I believe UBER have said they will do so, but I have already seen an opinion from a well respected employment barrister, Daniel Barnett, that they will not get permission to appeal.
So what impact does this have on other businesses? If you only have employees it will make no difference, but if you use people engaged in the ‘gig’ economy, currently considered to be self-employed, the situation may turn out to be very different – obviously dependant on the specific circumstances. It may be that we see more individuals accruing rights, and the related costs, of holiday pay and minimum wages.
For those who enjoy reading Employment Tribunal judgements, the full judgement can be found here If you want to read an especially trenchant set of comments, look at paragraph 87.
Meanwhile if you have any concerns about the employment status of any individuals who work for you, and the potential liabilities that may accrue, don’t hesitate to give me a call.
