Hermes employment status tribunal ruling and what it means for your company

27 June 2018

A recent employment tribunal ruling stated that a group of 65 couriers, engaged by the delivery service provider, were entitled to rights as “workers” such as holiday pay and minimum wage and that they were previously not genuinely self-employed contractors.

This decision reflects the recent verdicts brought against Addison Lee, City Sprint, and Excel. The GMB, who helped bring the case to tribunal, have also announced legal action against three amazon delivery companies.

The expanding self-employed marketplace in the UK and growing Gig Economy presents challenges to many businesses when it comes to ensuring compliance in relation to work status.

With recent Government announcements on new labour policies, keeping up with requirements can be complicated and time consuming for many business owners and leaders. At IN-SYNC Outsourcing, we hear from many businesses that tell us they are not entirely clear as to how they should or should not treat and engage with their independent contractors.

These challenges can be seen in the increase in the number of tribunals being brought against companies who have previously deemed these operatives as self-employed (we have seen an increase of over 400% since the tribunal fees were abolished in 2017). The implications and impact of this can present businesses additional risks to manage and potential financial burden

Managing Director of ISO Jag Jeer advises that “any company who engages self employed contractors should consider if they are able to deal with the financial implications of backdated holiday pay and benefits if they are not registering sub-contractors correctly, as this could have a hugely detrimental impact on their business. Anyone in doubt about managing risk and compliance with their workforce should seek professional advice and guidance sooner rather than later

IN-SYNC Outsourcing are experts in self-employment and worker status, we can help you make sure you’re on the right track when it comes to engaging your operatives, helping you to reduce the risk and financial implications of situations like this happening to your business.