UK Bicycle Courier Wins Landmark Employment Rights Case

In a case that may have significant consequences for the UK gig economy, a London tribunal ruled that Maggie Dewhurst, a courier at the logistics firm City Sprint, should have the same rights as other workers despite her self-employed status.

To be recognized as a worker allows Ms Dewhurst to gain the employment rights that would otherwise be denied to self-employed staff, such as sick pay, holiday and and the right to UK national living wage.

The ruling was largely related to a complaint she made over pay issues. A statement by the tribunal stated that the revered courier service “unlawfully failed to pay her for two days’ holiday”, despite her two years of dedicated service for the company.

Reacting to the ruling, City Sprint expressed how “disappointed” the firm is and will be reviewing options for an appeal. A spokesman for the business said:

“This case has demonstrated that there is still widespread confusion regarding this area of law, which is why we are calling on the government to provide better support and help for businesses across the UK who could be similarly affected.”

This individual case has much larger ramifications for all businesses that are part of the so-called gig economy, which consist of companies that hire self-employed workers on contracts that limit their employment so that they receive work without a promise of regular shifts; a contrast to the rights of full-time workers.

A recent tribunal ruling that reflects the City Sprint case involves another courier business; the popular taxi-hailing app Uber, which saw legal action from its employees. This case resulted in the business being made to give self-employed drivers the same employment benefits that ordinary workers benefit from.

Although Uber intends to appeal that ruling, there are several other tribunal cases currently being heard against courier businesses due to claims of unfair treatment from self-employed workers which could lead to changes for the entire gig economy. The other businesses at the centre of these cases include Excel, Addison Lee and E-Courier.

Ms Dewhurst’s situation is very much one of unfair treatment due to the extent of her job specification, which goes far beyond self-employed expectation to instead rely upon employer guidance. She stated the following regarding workers of her position:

“we spend all day being told what to do, when to do it and how to do it. We’re under their control. […] that’s why we deserve basic employment rights like the national minimum wage. I’m delighted that the tribunal ruled in our favour as it has set a legal and moral precedent which others can use to make similar claims.”

Some self-employed workers feel that flexible working contracts deny them basic employment rights in a job market that leaves them no other form of employment option.

However, employers are unsurprisingly less critical of such contracts, as they find this employment type to be beneficial to workers due to the flexible nature they offer, which allows workers to conveniently balance their personal responsibilities with work, and that existing employment laws need to be updated to accommodate this in a clear and fair manner for the protection of both workers and employers.

Although each ruling should potentially be dealt with on a case by case basis due to the differing scenarios that largely exist between forms of self-employment. The UK government is currently awaiting a recently commissioned independent review into the modern practices of self-employed workers, due for publication in spring 2017.