This is a hot topic at the moment with three large employers under scrutiny for their pay structures:Uber, the transport company, has been taken to the employment tribunal to face a claim made by two of its drivers, or 'driver partners', that they should be treated as workers, rather than self-employed. The test for a 'worker' is provided for in the Employment Rights Act 1996 and requires work to be done either under a contract of employment or any other contract where the work is done personally and not by a business being run by the worker in question. Obtaining worker status would grant the drivers more employment rights and would protect them from being paid less than the minimum wage, one of the branches of the claim being made. Uber has over 30,000 driver partners in London alone and the case is likely to have large impact on this style of business. Watch this space for updates.Meanwhile, Deliveroo, the restaurant delivery app and firm, has written a clause into its contract that … [Read more...] about When Do ‘Self-Employed’ in UK Qualify for National Minimum Wage and Holiday Pay?
Paying self employed staff
Results-Based Commission Should Be Included in Statutory Holiday PayThe UK Court of Appeal has upheld the Employment Appeal Tribunal's decision in Lock v. British Gas. Under the Working Time Regulations, workers have the right to at least four weeks' paid annual leave. European case law has now held that workers must receive their "normal remuneration" when on statutory holiday (but does not extend to the extra 1.6 weeks or any additional contractual entitlement). Normal remuneration includes results-based commission. This decision is likely to be appealed before the Supreme Court by British Gas. What Should Employers Do Next?This judgment simply confirms what we already know; however, employers in industries where individual commission is the norm should consider following this area closely.Uber Decision: Impact for Entire Gig Economy PredictedOn 28 October, the Employment Tribunal gave judgment in Aslam (and others) v Uber, holding that Uber drivers were workers rather than … [Read more...] about Gig Economy, Results Based Commission, Equal Pay Claim: Employment Matters UK – November 2016
New Cases Highlighting When "Gig Economy" Workers Are Entitled to Employment RightsThe "gig economy" is characterised by work performed on a short-term/temporary basis, in contrast to more traditional long-term roles. As the "gig economy" has grown, so too has the case law governing the employment rights of those working in that sector. In the UK, these people are either "employees" (i.e., having full employment rights), "workers" (having some employment rights—e.g., not to be discriminated against, the right to vacation and sick pay, and to be paid the minimum wage) or "self-employed" (having very limited rights). Traditionally it was thought that short-term workers were self-employed and as such did not have employment rights. Following an Employment Tribunal decision against Uber in October, though, two cases this year have further clarified the area.In Pimlico Plumbers v Gary Smith, despite the claimant plumber's employment contract expressly referring to the claimant as … [Read more...] about Gig Economy, Religious Discrimination, Gender Pay Gap: Employment Matters UK – February 2017
UK votes to leave the EUWe could not write a roundup of news stories from the UK without referencing the UK's vote to leave the EU. The so-called "Brexit" has created uncertainty and speculation as to the implications of leaving the EU and what happens next. In relation to employment law, although exiting the EU will have implications for employment law, we consider that much that is in place will remain, not just in the short-term but in the medium and long-term too.We have outlined the potential impact of Brexit on UK employment law in, Brexit: The Consequences for UK Employment Law. We will continue to provide updates on the actual impact of Brexit (rather than mere speculation) as it relates to employment and data protection law in the forthcoming months. Guidance on the General Data Protection Regulation issued following BrexitOn 25 May 2018 the General Data Protection Regulation ("GDPR") is due to come into force. This is EU legislation concerning data protection rights, and … [Read more...] about News, Legislation, Case Law Update: August in UK Employment Law
There Is No Implied Term Waiving the Obligation To Repay a Loan in a Voluntary Redundancy SituationEmployers who advance sums to employees, such as relocation costs, will often try to claw back those sums in the event that the employee leaves within a defined window. The Privy Council (broadly, a collection of senior politicians who are or have been members of the House of Commons or House of Lords) looked at the legality of this in a recent case. In this case, the employee received a repayable allowance from his employer while he undertook a degree. The repayment terms expired if he worked for the employer for five years following completion of his degree. In the event, the employee took voluntary redundancy 18 months after returning to work, and his employer deducted the loan payments from his redundancy payment. The Privy Council decided that there was no implied term on the facts of this case that repayment was not required. This was because the employee freely chose to … [Read more...] about Voluntary Redundancy Situation, Data Subject Access Requests, Gig Economy, Headscarves: Employment Matters – UK March 29 2017