{"id":1101,"date":"2017-02-13T12:17:18","date_gmt":"2017-02-13T12:17:18","guid":{"rendered":"http:\/\/www.tayloremmet.co.uk\/blogsite\/?p=1101"},"modified":"2017-02-13T12:17:18","modified_gmt":"2017-02-13T12:17:18","slug":"uber-employment-status","status":"publish","type":"post","link":"https:\/\/www.tayloremmet.co.uk\/blogs\/uber-employment-status\/","title":{"rendered":"Uber: what is my employment status?"},"content":{"rendered":"<p>Well publicised cases (such as that of Uber) involving what is fast becoming known as the &#8220;gig economy&#8221; have brought into sharp focus an issue which Employment Tribunals have been grappling with for sometime. The issue of employment status.<\/p>\n<p>Employment law entitles\u00a0individuals to different legal rights and imposes different legal duties on those companies engaging them depending on their employment status. Any given person whether working in the gig economy or\u00a0not\u00a0will fall into one of three categories:<\/p>\n<ul>\n<li>employee;<\/li>\n<li>worker;\u00a0or<\/li>\n<li>self-employed.<\/li>\n<\/ul>\n<p>The reason why employment status is so important is that if someone is determined to be an employee\u00a0they will have significantly more\u00a0rights\u00a0than someone who is self-employed.\u00a0An employee has an entitlement to statutory sick pay,\u00a0the right to request flexible working and most crucially the right to not be unfairly dismissed.\u00a0An individual considered to be self-employed will not be afforded any of these rights and\u00a0will usually be considered to carry the risk of the failure or success of their own\u00a0business.<\/p>\n<p>In between\u00a0employment and self-employment\u00a0there is the intermediate category\u00a0of\u00a0a &#8220;worker&#8221;. This is a concept incorporated into UK employment law as a result of EU Directives. Workers cannot bring claims for unfair dismissal but they do still\u00a0have\u00a0the right to not suffer unauthorised deductions from wages, the right to earn the\u00a0National Minimum Wage and\u00a0significantly they have an entitlement to\u00a0take paid annual leave.<\/p>\n<p>The definition of employment set out by statute is\u00a0deliberately broad to encompass what can be a multitude of different circumstances.\u00a0The label that the parties attribute to the relationship does not necessarily determine the true status of the relationship. Employment Tribunals have the power to look past what is stated in the contract\u00a0to consider all relevant factors governing how the relationship works in practice.<\/p>\n<p>The test\u00a0applied when deciding someone&#8217;s employment status\u00a0incorporates a mixture of factors including, how much control is exerted over the way they\u00a0work, whether they\u00a0do the work personally and whether both parties have an obligation to\u00a0give and conduct\u00a0work.\u00a0There can be a seemingly endless number of other contributing factors to deciding someone&#8217;s employment status such as who pays tax and national insurance, whether the individual\u00a0provides their own\u00a0equipment, whether they are subject to the company&#8217;s policies and procedure and how integrated an individual is\u00a0into the business.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignleft wp-image-1102 size-medium\" src=\"https:\/\/www.tayloremmet.co.uk\/blogsite\/wp-content\/uploads\/2017\/02\/Uber-pic-300x200.jpg\" alt=\"Uber: what is my employment status?\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.tayloremmet.co.uk\/blogs\/wp-content\/uploads\/2017\/02\/Uber-pic-300x200.jpg 300w, https:\/\/www.tayloremmet.co.uk\/blogs\/wp-content\/uploads\/2017\/02\/Uber-pic-600x400.jpg 600w, https:\/\/www.tayloremmet.co.uk\/blogs\/wp-content\/uploads\/2017\/02\/Uber-pic-768x512.jpg 768w, https:\/\/www.tayloremmet.co.uk\/blogs\/wp-content\/uploads\/2017\/02\/Uber-pic-360x240.jpg 360w, https:\/\/www.tayloremmet.co.uk\/blogs\/wp-content\/uploads\/2017\/02\/Uber-pic.jpg 940w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Following the credit crunch and subsequent recession the\u00a0employment landscape has changed, these changes include the\u00a0rise to prominence\u00a0of the gig economy. Proponents of the gig economy say that it reflects changing attitudes towards work by giving people the flexibility to work how and when they choose but critics say that\u00a0it\u00a0is exploitative because\u00a0the relationship is\u00a0often balanced heavily in favour of the\u00a0company\u00a0in order to remove employment rights.<\/p>\n<p>The recent well publicised Employment Tribunal case involving the taxi\u00a0company Uber shows the current thinking\u00a0of Tribunals when deciding some of the employment status issues thrown up by the gig economy. Uber\u00a0enables their customers to book and pay for a taxi through a smartphone app, which is currently in operation in approximately 70 different countries.<\/p>\n<p>Uber maintains its drivers are self-employed because\u00a0their drivers purchase their own vehicles and incur the expense of running them, they are entitled to work for competitors and they are self-employed for tax and national insurance purposes.<\/p>\n<p>The Tribunal disagreed and found the drivers to be workers. Although drivers are expected to provide their own vehicles, cars can only be used from a specified list set by Uber. It was agreed the drivers are given the option to accept a job\u00a0but they are only given 10 seconds to accept and in the event three jobs in a row\u00a0are not accepted, the driver will be\u00a0logged off the app for 10 minutes. The Tribunal interpreted this as a form of disciplinary action and control set by Uber. The mapping software used by Uber\u00a0determines the route that should be used by the driver, monies can be deducted from the driver\u2019s payment if\u00a0a customer complains and\u00a0drivers\u00a0are not permitted to use a substitute (by sharing the\u00a0driver\u2019s app login). The Tribunal therefore found that the drivers were not in business on their own account and therefore could not\u00a0be\u00a0truly said to be\u00a0self-employed.<\/p>\n<p>The case means that drivers will now\u00a0be looking at accruing 5.6 weeks\u2019 worth of annual leave, being paid the National Minimum Wage and consideration will also need to be given to\u00a0whether\u00a0money deducted from drivers\u2019 pay as a result of customer&#8217;s complaints has been done so unlawfully. This case\u00a0is only an Employment Tribunal case and does not therefore need to be followed by other Tribunals,\u00a0however there has\u00a0also been a recent Court of Appeal case called <em>Pimlico Plumbers Ltd and anor v Smith <\/em>on the same issue which supports the position adopted by the Tribunal in the <em>Uber <\/em>case which\u00a0Tribunals will be required to follow the next time a case involving the gig economy is heard.<\/p>\n<p>Whilst the issue of employment status will always be finely balanced and decided on\u00a0specific facts, recent cases on this point\u00a0demonstrate a clear direction of travel\u00a0in the Courts\u00a0to support\u00a0individuals\u00a0working in the gig economy.<\/p>\n<p>For more information please contact us at <a href=\"mailto:info@tayloremmet.co.uk\"><strong><span style=\"color: #003a7a;\">info@tayloremmet.co.uk<\/span><\/strong><\/a>, or call us on <span style=\"color: #003a7a;\"><strong>(0114) 218 4000.\u00a0<\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Well publicised cases (such as that of Uber) involving what is fast becoming known as the &#8220;gig economy&#8221; have brought into sharp focus an issue which Employment Tribunals have been grappling with for sometime. The issue of employment status. Employment law entitles\u00a0individuals to different legal rights and imposes different legal [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[177,39,178,47,104,179,180,181,40],"class_list":["post-1101","post","type-post","status-publish","format-standard","hentry","category-news","tag-employee","tag-employment-rights","tag-employment-status","tag-holiday-pay","tag-national-minimum-wage","tag-self-employed","tag-taxi","tag-unlawful-deduction-from-wages","tag-workers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Uber: what is my employment status? | Blogs<\/title>\n<meta name=\"description\" content=\"A recent Employment Tribunal case involving Uber shows the current thinking of Tribunals when deciding the employment status issues that are thrown up.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tayloremmet.co.uk\/blogs\/uber-employment-status\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Uber: what is my employment status? 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