Gary Smith awarded basic working rights in a Supreme Court ruling expected to have huge ramifications for the “gig economy” and freelance workers.
Background
In the case of Pimlico Plumbers Ltd and another v Smith [2017] IRLR 323 CA, the Supreme Court held that a plumber, namely, Gary Smith described in his contract as a “self-employed operative” was a worker under the statutory provision
A plumber has won a legal battle for working rights in a Supreme Court ruling expected to have huge ramifications for freelance workers.
The case centered on whether Gary Smith who had worked solely for Pimlico Plumbers for six years between 2005 and 2011 was self-employed as the Company claimed or was a worker. During this period, Mr Smith was VAT registered and paying self-employed tax.
Following a heart attack in January 2011, Mr Smith sought to work three days per week instead of five as I had previously done. The Company refused to grant Mr Smith’s request and confiscated his branded “Pimlico” van dismissing Mr Smith in May 2011.
Mr Smith claimed that he was dismissed following a heart attack and brought a claim on grounds of disability discrimination, holiday pay and unauthorised wage deduction.
Approving the decision of the lower courts, the Court of Appeal determined that Mr Smith was a worker as opposed to self-employed on the basis that he was required to do a certain number of hours’ per week and was expected to use a Pimlico van whilst doing so. This month, the Supreme Court has ruled that he was entitled to workers’ rights.
Effects of the ruling
The Supreme Court’s decision appears to represent a watershed moment and sets a powerful precedent in favour of people seeking employment rights. With continued exposure within the media of cases such as Uber, Deliveroo and City Sprint, the ramifications of this case may encourage other “self-employed” contractors to challenge their legal status.
Calls for a “crackdown”
The current position under Employment Law placed the onus on an individual to prove that they are employed and entitled to workers’ rights which has called for reforms, most notably from the TUC (Trades Union Congress) to establish a “reverse burden of proof” so workers benefits from rights and that the onus rest on an employer to show that an individual is self-employed.
In February, the government proposed to overhaul employment rights in a bid to improve conditions for workers especially within the “gig economy.”
The proposals include tighter enforcement of holiday and sick pay rights and heavier fines for firms in breach of contracts.
The proposals come in response to last year’s “Taylor Review” into the gig economy which found that all work in the UK’s economy ought to be “fair and decent” and that individuals working for companies such as Uber and Deliveroo should be classed as dependent contractors. The Supreme Court’s decision is likely to have lasting effect on individuals who are employees in all but name being able to secure workplace rights.
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