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UK’s highest court rules Deliveroo riders are not employees |Consensus HR Herts, Beds

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UK's highest court rules Deliveroo riders are not employees |Consensus HR Herts, Beds

The Supreme Court has ruled that people working for Deliveroo cannot be considered employees because they don’t have specified hours, can work for rival companies, and can appoint someone to work in their place. A case brought by the Independent Workers Union of Great Britain (IWUGB) argued that Deliveroo riders should have collective bargaining rights, but the Supreme Court ultimately ruled they cannot benefit from union membership as they do not meet the definition of a worker or employee. A Deliveroo spokesperson said: “UK courts repeatedly and at every level have confirmed that Deliveroo riders are self-employed, and this now includes the highest court in the country. This is a positive judgment for Deliveroo riders, who value the flexibility that self-employed work offers.” The IWUGB, which represents thousands of gig economy workers, said it was disappointed by the decision and was considering its options under international law.

 

The Daily Telegraph

The Times

The Guardian

BBC

Previous blog writing on Employment status:

Our HR comments / advice: – UK’s highest court rules Deliveroo riders are not employees |Consensus HR Herts, Beds

Matthew P Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “The working status of a person has again been considered in a judgement by the Supreme Court in relation to Union Status.  In the case ‘Independent Workers Union of Great Britain (Appellant) v Central Arbitration Committee (CAC) and another (Respondents) Case ID: 2021/0155 where the CAC refused to accept the Unions application to be recognised by Deliveroo for Collective bargaining interfere with the rights of Deliveroo riders to form and join a trade union under Article 11 of the European Convention of Human Rights.  This is another prime example of when the employment status plays a major part in what Employment Law is applicable and refers me to the previous blogs, we have written on the subject that can be found below as Deliveroo drivers are Self Employed:

Previous blog writing on Employment status:

 

Deliveroo delivery bags and driver

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If you run a business and have a team and are currently worried about the status of your team members and which to have a non-obligatory conversation about them and how we can help you to ensure you are working to best practice and the law, give us a call now. Consensus HR | Helping companies take the pain our of employing people whilst preventing people problems.
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UK's highest court rules Deliveroo riders are not employees |Consensus HR Herts, Beds

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Employee, Worker or Self-Employed … What’s the Difference

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Employee, Worker or Self-Employed … What’s the Difference

Ultimately, whether you are an employee, a worker or self-employed, you get paid for your work. With the same result involved, does it really matter which status you have? Yes. Unequivocally, yes!

Your employment category has a huge impact on your rights and your expectations of the business you work for. For employers, there is more legislation and associated cost involved with hiring employees and workers compared with self-employed contractors.

In recent years, there have been high-profile cases regarding employment status, notably Uber, Addison Lee and Pimlico Plumbers. All attempted to justify why they worked with self-employed people in their businesses and not employees. Each of their cases were heard at separate Employment Tribunals and generated the same decision … the people involved were classified as employed workers.

Matthew Pinto-Chilcott – MD of Consensus HR states “This is an area that has been a nightmare for business owners for an extremely long time. Many employers believe it is more tax efficient and easier to manage if you make everyone self-employed and just pay their invoices. But is this really the case?  Is it really that simple? For too long the employment status of team members has not been fully addressed. The Government, Employment Tribunals & the individuals involved are fighting back.”

What is the difference?

Here’s a handy comparison to help determine whether someone working within your business is officially classed as a worker, employed or self-employed.

EMPLOYEE:

An employee is someone who works under an employment contract.

Employment rights

All employees are workers, but an employee has extra employment rights and responsibilities that don’t apply to workers who aren’t employees.

These rights include all the rights workers have (see below) plus:

Some of these rights require a minimum length of continuous employment before an employee qualifies for them. An employment contract may state how long this qualification period is.

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WORKER:

A person is generally classed as a ‘worker’ if:

  • they have a contractor other arrangement to do work or services personally for a reward (this 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 must turn up for work even if they don’t want to,
  • their employer must have work for them to do for as long as the contract or arrangement lasts, and
  • they aren’t doing the work as part of their own limited company in an arrangement where the ‘employer’ is actually a customer or client.

Worker Employment rights

Workers are entitled to certain employment rights, including:

  • getting the National Minimum Wage,
  • protection against unlawful deductions from wages,
  • the statutory minimum level of paid holiday,
  • the statutory minimum length of rest breaks,
  • to not work more than 48 hours on average per weekor to opt out of this right if they choose,
  • protection against unlawful discrimination,
  • protection for ‘whistleblowing’(reporting wrongdoing in the workplace), and
  • to not be treated less favourably if they work part-time.

They may also be entitled to:

 

Employee, Worker or Self-Employed … What’s the Difference

SELF-EMPLOYED:

A person is self-employed if they run their business for themselves and take responsibility for its success or failure.

Self-employed workers aren’t paid through PAYE, and they don’t have the employment rights and responsibilities of employees.

Someone can be both employed and self-employed at the same time. For example, they may work for an employer during the day and run their own business in the evenings.

Self-Employed Employment Rights

Employment Law doesn’t cover self-employed people in most cases as they do not have an employer.

However, if a person is self-employed:

  • they still have protection for their health and safety and, in some cases, protection against discrimination, and
  • their rights and responsibilities are set out by the terms of the contract they have with their client.
Employee, Worker or Self-Employed … What’s the Difference

Are you unsure of the employment status of people working within your business?

Is your business complying with employment law?

Do you find this area of Employment Law confusing?

Employee, Worker or Self-Employed … What’s the Difference

 

Let’s demystify the situation!

Talk to the friendly experts at Consensus HR. Employment Law is a professional specialism of ours. We can talk through your circumstances without obligation … or jargon!

Call us on 01438 576750 or alternatively complete our ‘Contact’ form. Let’s talk!

Contact us now

Are you unsure of the employment status of people working within your business? Is your business complying with employment law? Do you find this area of Employment Law confusing? Talk to the friendly experts at Consensus HR. Employment Law is a professional specialism of ours. We can talk through your circumstances without obligation … or jargon! Call us on 01438 576750 or alternatively complete our ‘Contact’ form. Let’s talk!
Contact Us

YOUR OUTSOURCED HUMAN RESOURCES DEPARTMENT.

For further information on any of the HR subjects we provide, please click the heading below:

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