An interesting article from Jelf, our Pensions Partner
In October 2016 the Prime Minister, Theresa May, asked Matthew Taylor, Chief Executive of the Royal Society of Arts, to review employment practices: The Independent Review of Employment Practices in the Modern Economy.
The background to this is an Employment Tribunal case involving Uber and, separately, the debate about individuals with zero hour contracts. Following the Uber case, in November, it was announced that 4 couriers at CitySprint have started a similar case at an Employment Tribunal regarding holiday pay, which they won. There is therefore a momentum underway which makes this Review significant.
Under the review Matthew Taylor will look at job security, pay and workers’ rights reflecting changing working practices, in particular the “gig economy”. There are 6 key themes for the Review to consider, of which “Security, pay and rights” is of particular interest as this includes Pension Auto Enrolment.
The Review is expected to be completed in 6 months.
The recent case involving Pimlico Plumbing: https://www.judiciary.gov.uk/wp-content/uploads/2017/02/pimlico-plumbers-v-smith.pdf heard a case regarding an individual who was considered to be self employed by the organisation using his services.
However, the result of this case was to say that the individual was defined:
“….as a worker within the meaning of section 230 (3) of the Employment Rights Act 1996(for the purpose of his claim for unlawful deduction of wages) and regulation 2 (1) of the Working Time Regulations 1998 (for the purpose of his claim that he had been denied paid holiday) and that he was an employee within the meaning of section 83 (2) (a) of the Equality Act 2010 (for the purpose of his claim of disability discrimination).”
If you engage individuals on a regular basis and consider them to be self-employed it may be appropriate to speak to your HR consultant in light of these cases. It is also important to ensure that your Employer’s Liability insurance has the correct details for the labour only sub contactors section.