You’ll probably be familiar with the term ‘gig economy’ – parlance used to describe those who are employed by companies on a job-by-job basis.
With a rapidly changing economy, there has been much debate in recent months around what rights these workers should enjoy and how they should be classified.
But now a ruling has provided clarity in a decision that could have significant consequences for thousands of employers and staff.
An employment tribunal found that Addison Lee taxi drivers should be classed as employees, not self-employed as the taxi firm had argued.
The decision means that they are entitled to essential workers’ rights, including being paid the national minimum wage, receiving holiday pay and not having their contracts terminated because they are members of a trade union.
The ruling is in line with a similar tribunal involving the taxi-hailing company Uber, which found that the company’s drivers should be treated as employed workers with rights to minimum wage and sick pay.
There will now be a further hearing at the tribunal to calculate the holiday and pay that the drivers should receive.
Estimates suggest as many as 1.1 million British people work in the gig economy.
In July, the Government’s review into modern employment practices stated that every job in the UK should be ‘fair and decent’.
The Taylor Review made a series of recommendations, most notably that those who work on a ‘per-job’ basis for platform-based companies, like Deliveroo and Uber, should now be classed as ‘dependent contractors’, entitling them to extra benefits, such as sick pay and holiday leave.
How can our Employment Law Lawyers help?
With the rapid emergence of technology-driven business models, the last decade has seen huge changes in the way people work and the relationship they have with their employers.
As a result, employers, more than ever before, need sound and clear legal advice to help them to protect their employees when things are going well and to protect themselves when relations break down.
To find out more about how we can help you, contact us on 01473 298126 or email [email protected]