Looking beyond the label

By Lancashire Business View

07 Jun 2017

In association with

The gig economy has been described as a five million-strong ‘labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs’.

By Victoria Mitchell, associate partner and head of employment law and HR at Farleys Solicitors.

Individuals get paid for the ‘gigs’ they perform, such as parcel delivery, rather than a regular wage.

This is viewed by some as a working environment offering flexibility and by others as exploitation with very little workplace protection.

Recent cases including the Uber taxi drivers, City Sprint parcel couriers, Deliveroo takeaway couriers and, most recently, Pimlico Plumbers has highlighted the employment status of selfemployed individuals (or independent contractors) in the gig economy, and marked a movement away from this status to classification as ‘workers’.

The law governing employment status looks beyond the label applied, whether this is self-employed, a worker, or an employee, and focuses on the reality of the relationship.

Key components of an assessment and decision by an Employment Tribunal on employment status include mutuality of obligations, personal service and control – all of which must be present for an individual to be classed as an employee.

In Pimlico Plumbers & Charlie Mullins v Gary Smith, the Court of Appeal agreed with the original Employment Tribunal decision that found the self-employed plumber was actually a worker.

As a result of being given the status of workers, these self-employed individuals are now entitled to more rights than if they had been deemed self-employed. These include the national minimum wage, paid holiday, rest breaks, not to be treated detrimentally, and the ability to bring discrimination and whistleblowing claims.

Independent contractors are now starting to build up a number of workplace protections and the lines between the three categories of self-employed, worker, and employee are becoming increasingly blurred. Categorising someone as an independent contractor when in reality they are a worker could be very costly and result in significant tax liabilities and penalties – including criminal sanctions – for failing to comply with auto-enrolment obligations and Employment Tribunal claims.

Top tips for employers

Take account of a changing workforce and economy Review staffing structures Focus particular attention on those labelled as freelance and self-employed staff Take advice as to the status of staff and whether or not your business has any written terms governing these relationships and if so whether they afford appropriate protection.

Latest news

1

20 years of 'outstanding education for Nelson and Colne College Group Nelson and Colne College Group celebration

20 years of 'outstanding education for Nelson and Colne College Group

28 Jan 2025

2

Different roads open up for the Issa brothers Zuber and Mohsin Issa

Different roads open up for the Issa brothers

28 Jan 2025

3

Ex-Mercia investor joins LCC’s fhunded team to support increased VC deal activity Kiran Metha and Rory Southworth

Ex-Mercia investor joins LCC’s fhunded team to support increased VC deal activity

28 Jan 2025

4

Blackpool Post Office hotel plan Abington Street Post Office

Blackpool Post Office hotel plan

28 Jan 2025

5

Assets from long established Blackburn business to be sold Community and Business Partners in Blackburn with doors shut

Assets from long established Blackburn business to be sold

28 Jan 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:30 - 16:00

Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

The Marketing Meetup IRL: Lancashire
LBV Hub Event Image.png.png
LBV Hub Networking
30 Jan 2025 - 30 Jan 2025

The Marketing Meetup IRL: Lancashire

Strawberry Fields Digital Hub, Chorley, PR7 1PS

18:00 - 20:00

February Preston Tech Connection Meet-Up: Tech & Our Planet
PRESTON TECH CONNECTION jan.ai.png.png
LBV Hub Networking
12 Feb 2025 - 12 Feb 2025

February Preston Tech Connection Meet-Up: Tech & Our Planet

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Police Apprenticeship event
Student Centre Autumn 2022.jpg.jpg
LBV Hub Social
12 Feb 2025 - 12 Jan 2025

Police Apprenticeship event

University of Central Lancashire, Foster Social Space , Preston , PR1 2HE

16:00 - 19:00

Amber River True Bearing Quarterly Investment Seminar
LBV Hub Seminars
13 Feb 2025

Amber River True Bearing Quarterly Investment Seminar

Mercure Blackburn Dunkenhalgh Hotel & Spa, Blackburn Rd, Clayton-le-Moors, Blackburn, Lancashire, BB5 5JP

16:00 - 18:00

The Business Network Central & East Lancashire
LBV Hub Networking
13 Feb 2025 - 13 Feb 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Sub36 Networking - Behind the beans
Sub36 Social1200Atkinsons New
Networking
14 Feb 2025

Sub36 Networking - Behind the beans

Atkinsons Speciality Coffee, Lancaster, LA1 1 EX

09:00 - 11:30

National Apprenticeship Week 2025 Celebration - Business Breakfast Showcase
Student Centre Autumn 2022.jpg.jpg
LBV Hub Networking
14 Feb 2025 - 14 Jan 2025

National Apprenticeship Week 2025 Celebration - Business Breakfast Showcase

Media Factory , Preston, PR1 2HE

08:00 - 10:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Employment Law, Tax and Payroll Update - East Lancashire
Employment updates - LinkedIn East Lancs-01.png.png
LBV Hub Seminars
26 Feb 2025 - 26 Feb 2025

Employment Law, Tax and Payroll Update - East Lancashire

Accrington Stanley Football Club, Accrington, BB5 5BX

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV120 Online Graphic 1
Subscribe now

Weekly news bulletin