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The technology-driven 'gig economy' uses a contractor-style workforce who are paid on self-employed or independent basis, rather than a fixed employment contract. As such, there are concerns that they are missing out on employment rights.
There have been concerns that efforts to protect vulunerable or exploited workers in the 'gig economy' might impact on 'genuine' freelancers who operate in a similar independent way through limited companies or self-employment, but who do not want nor require any workers' rights.
CitySprint
The claimant in this CitySprint case was 29-year-old Margaret Dewhurst from London, who cycles an average of 50 miles a day, transporting blood and medical supplies to hospitals and clinics across the capital. However, in common with the majority of couriers, she does not receive a guaranteed minimum wage, sick pay or holiday pay.
CitySprint argued that it doesn’t actually employ any couriers at all. It contended that its couriers are independent subcontractors and, as such, aren’t covered by statutory protections relating to, for example, holiday pay.
However, the Central London Employment Tribunal rejected CitySprints arguments. The Judge, Joanna Wade, described CitySprint’s contractual arrangements as contorted, indecipherable and window-dressing.
Right outcome
Paul Jennings from lawyers Bates Wells Braithwaite who represented Ms Dewhurst described the judgment as 'legally and ethically the right outcome'. He predicted that the judgment will have wider implications.
Mr Jennings said: “Until now couriers have occupied a vulnerable position. They carry out physically demanding work, in dangerous conditions, but cannot take paid leave. In the wake of this judgement, we expect to that thousands of couriers across the capital will look to assert their rights and seek back pay.
“In a sense the law is catching up with technology. The cases against courier companies, just like the case against Uber, involve businesses using innovative technology platforms and business models in a way that seeks to avoid basic statutory rights. Technology aside, the courts take a common-sense approach to these issues: if individuals are controlled, economically dependent and vulnerable to exploitation, basic protections should apply”.
CitySprint said that it was disappointed with the decision and will be reviewing the ruling in detail.
The case against CitySprint is the first in a series of actions against the UK’s major courier companies. Similar challenges against Addison Lee; Excel and E-Courier are due to be heard in March/April 2017.
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Susie Hughes © Shout99 2017
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