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Matt Sutton, Director of Greenaway Scott Comments on the on ‘Gig Economy’ Rights


This article has been provided by Greenaway Scott.

The ruling in the high-profile Gary Smith v Pimlico case is a step in the right direction when it comes to the future of employment rights in the so-called “gig-economy”.

The case, which saw Smith take on his employers after claiming unfair dismissal, is the latest in a flurry of employment tribunal hearings being brought by self-employed workers attempting to establish basic employment rights.

Smith had been working at the London-based plumbing company Pimlico for six years before suffering a heart attack and was dismissed. He subsequently brought a claim against the company for unfair dismissal and disability discrimination and also sought sick and holiday pay.

572ae283d6c4eb236f245853_matt-suttonThe tribunal established that whilst the contract between Smith and Pimlico was drafted so as to treat the worker as self-employed for the purposes of tax and VAT, he was a worker for the purposes of the ERA because he was obliged to wear a uniform and work a minimum of 40 hours per week.

The hearing follows a recent rise in the so called ‘gig economy’. This has seen more and more workers opting for self-employed status, working on a contract or project-by-project basis. Whilst this rise may reflect a new trend towards a more agile and flexible workforce, this could see employees forfeit employment rights including sick and holiday pay.

The ruling in favour of Smith is a positive step for self-employed workers seeking to protect their employment rights. Going forwards it will ensure that contracts of this kind are drafted to reflect the true nature of the relationship between the worker and the company.

It should be noted, however, that this particular case was decided solely on its own facts and will not be a blanket decision from which further tribunal hearings seek precedent.

But it is certainly a step in the right direction. It highlights the courts willingness to look at the actual working relationship between the employee and the employer, rather than what has been agreed on paper and can often be a far cry from the facts.

The coming months are set to see many similar hearings against big name employers and we welcome further clarity on this currently murky area of law.

The employment team at Greenaway Scott are more than happy to assist in any employment matters