A controversial and highly publicised case has now received a ruling at the Employment Tribunal which states that two drivers who provide services to Uber are in fact classified as ‘workers’ under the Employment Rights Act 1996. You can read the judgement here: Aslam and Farrar v Uber
This has a significant impact on the growing number of individuals within the gig economy. The fact that they are indeed workers means that they will be entitled to some additional employment rights which include, among other things:
- Statutory paid leave each year (5.6 weeks)
- Rest breaks and a maximum 48 hour working week (if not opted out)
- The national minimum wage/national living wage
- Protection of the whistleblowing legislation
However, as they are classed as ‘workers’ and not ‘employees’ they still won’t receive entitlements such as the ability to claim unfair dismissal, the right to a statutory redundancy payment and the protection of TUPE amongst other things.
Whilst it’s still likely that the Uber Employment Tribunal decision will be appealed again, currently Uber drivers are now considered ‘workers’. This decision is based on Uber’s specific case, but it does increase the chance of other ‘gig economy’ companies facing similar claims.
The case illustrates the importance of determining the employment status of individuals which, as highlighted in the significant case law around the topic, can be very difficult. Some people are self-employed, some are workers, or they are supplied by an agency or seconded by another company.
Only employees are entitled to all statutory employment rights. The definition of an employee is an individual who has agreed to be at the service of an employer, who must do the work in person and whose work is controlled by the employer. There is often difficulty distinguishing workers from employees.
Essentially a worker is an individual who has entered into or works under a contract of employment, or any other contract whereby the individual undertakes to do or to perform personally any work or services for another party.
For more information and a checklist to consider whether or not your employees are employed, workers or self-employed, please read our article: Employment status: Employed or self-employed?
If you need advice regarding the employment status of your workers, then please contact us on 01271 859 267 or email office@fitzgeraldhr.co.uk.
