A Court of Appeal ruling could signify huge changes for businesses in the gig economy.
Garry Smith wished to reduce his working hours with Pimlico Plumbers following a heart attack but the firm refused and he claims he was dismissed.
The court of appeal has now agreed with an employment tribunal that he was entitled to basic workers’ rights despite being self-employed.
The landmark decision, which is sure to affect other sections of the gig economy such as Uber - which lost the right to designate its drivers as self-employed last year - has been welcomed by the workers' union, GMB.
Maria Ludkin, GMB legal director said: "This case, like the Uber case in October 2016, is yet another victory for the bogus self-employed who have been treated appallingly by their employer. All they want is basic employment rights as are enjoyed by the majority, including the right to be paid a minimum wage and holiday pay. “The threat by the Deliveroo drivers in Brighton to take action for better pay and more work shows that workers are beginning to stand up against exploitative self employed contracts. GMB will support members seeking to stop exploitation."
Mr Smith had worked for Pimlico Plumbers for six years before requesting to cut his five-day week to three.
He was VAT-registered and paying tax on a self-employed basis, but worked solely for the London-based firm.
Bosses refused his request and he claims he was dismissed.
Following the termination of his contract he brought several claims, including unfair dismissal, to the Employment Tribunal. They ruled that he was not an employee but was of ‘worker status’, therefore not able to benefit from all employment rights but should be entitled to holiday pay and the National Minimum Wage. Pimlico boss, Charlie Mullins, took the decision to the Court of Appeal stating that Mr Smith was an ‘independent contractor’ rather than a worker or employee. The court rejected the firm’s appeal.
The government recently commissioned Matthew Taylor, Chief Executive of the Royal Society of Arts, to conduct a review of current employment rules to ensure they reflect modern business models.
He said: “As well as making specific recommendations I hope the review will promote a national conversation and explore how we can all contribute to work that provides opportunity, fairness and dignity.”
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