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Latest Uber development highlights complexity of worker classification
by Susie Hughes at 10:30 18/03/21 (News on IR35)
Online private hire network, Uber, has announced that it will pay 70,000 of its UK workers minimum wage, pensions contributions and holiday pay.
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This follows a recent Supreme Court ruling which upheld the decision that Uber drivers were 'workers' for the purposes of employment law, and were consequently entitled to workers rights and protections such as paid leave and minimum wage. (See: Uber impact on IR35 and PSC contractors - Mar 2021, Shout99)

Recruitment specialists, Guidant Global claimed that this illustrates how the complexity of worker classification can impact a business’s bottom line figures and urged employers, people managers and HR teams to ensure that truly compliant worker classifications and flexible workforce management processes are implemented across the entire talent supply chain to prevent exposure to sudden and unexpected fees or pensions contributions.

IR35
This is increasingly important for UK firms as the roll out of the new off payroll (IR35) rules for the private sector looms increasingly closer.

Simon Blockley, CEO at Guidant Global said: “While every business is different and will therefore tap into external workforces to varying degrees, it is apparent that the flexible segment of talent pools is not only growing, but also being increasingly utilised by businesses. We do expect this to constantly change – that is simply the nature of the agile world of work today.

"However, the latest developments relating to Uber and the recent ruling that its workers are employees and should be treated as such really highlights that there are some ‘grey areas’ for employers when it comes to clearly identifying worker classification. And as we near the deadline for IR35, this complexity is only going to increase.

“One of the greatest challenges organisations face when compliantly engaging flexible workers is having complete transparency across the supply chain in order to truly identify if compliant employment models and contracts are being deployed and classifications are correctly made. And while there is no one-size-fits-all solution to this, the Uber ruling is likely to be the first of many challenges that we’ll see to the structure of the gig economy. As such, it is now more important than ever that employers review their worker models and seek the right expert guidance.”

Further IR35 information
For more information about all aspects of IR35, including the controversial IR35 reforms see Shout99's News on IR35 section.


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Susie Hughes © Shout99 2021

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