A London employment tribunal has found that Uber drivers should be classified as employees rather than being self-employed. They will be entitled to holiday pay, paid rest breaks and the National Minimum Wage, unless Uber manage to appeal the decision. But what wider implications may this ruling have?
There are several other businesses with similar models to Uber and this case outlines the government’s approach to the ‘gig economy’ and the wider notion of disguised self-employment. Recruitment agencies should take serious consideration of how they engage their workers and whether they are truly self-employed or should be engaged on an employed basis.
It is inevitable that attention will be drawn to those workers that are engaged on a self-employed basis for recruitment agencies. There will need to be evidential proof of how they are treated by the end client, rather than simply relying on the way they are engaged, be this with a contract for services or an assumption that a particular job role or contract rate suggests they are self-employed. Pushing the boundaries of who you should allow to work on a self-employed basis just to gain a commercial advantage is a path that can only lead to a similar fate as that of Uber.
Clipper Contracting has worked with some of the best tax and employment advisors in the industry to develop an assessment for Supervision, Direction and Control and this is carried out on an assignment by assignment basis, ensuring information is gained about the how the worker is treated by the end client. It helps provide the evidential proof that will be required to prove your workers are genuinely self-employed.