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Employers’ newsletter - Employment vs self-employment vs worker

Confusion abounds following the upholding of an earlier judgment by the Court of Appeal that two former Uber drivers should have been treated as permanent staff and were entitled to receive national minimum wage and holiday pay.

The Court of Appeal ruling means that the drivers were workers, employed by Uber London Ltd; and so had the right to national minimum wage and holiday pay.  It also means that Uber could face increased employment tax bills in the UK if all drivers stop being classed as self-employed.

The Court of Appeal considered whether Uber contracts with passengers to provide driving services, which the drivers perform for it; or whether, as Uber argued, it acted only as an intermediary, providing booking and payment services and the drivers drive the passengers as independent contracts.  The Court concluded that the written contract terms say the latter; but do not reflect the practical reality of the relationship and can therefore be disregarded.

This has thrown up warning lights on contracts for the future.

If you require advice or employment status, please contact me.

 

 

Date: 27th March, 2019
Author: Cathy Corns

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