As we know some companies engage staff by labelling them as 'self employed' when really they should be defined as 'workers'. 'Worker' status ascribes certain benefits such as the ability to pursue various claims in the employment tribunal but most importantly paid annual leave.
A new judgment has exposed companies, who engage people in what has been dubbed 'the gig economy' to thousands of pounds in compensation payments. The judgment involved Conley King who worked as a sash curtain fitter on a self-employed basis, but was later found to have workers' rights. He brought a successful claim for £27,000 of backpay holiday pay he says he should have received.
Being classified as self employed means they have no protection against unfair dismissal, no right to redundancy payments, and no right to receive the national minimum wage, paid holiday or sickness pay. Often however self employed workers have more flexibility and will be paid more to compensate for the loss of rights. The test defining a worker is complex and legal advice should be sought before a claim is commenced.
In the UK, it is estimated that one million people are employed in this type of capacity and so there are potentially serious implications for companies who have embraced 'the gig economy'.
www.charlesprice.net
King V Sash Windows judgment
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