A window salesman in the UK who worked for a sash window firm on a self-employed basis for 13 years between the years of 1999 and 2012 has taken his employer to court and during an EU tribunal it was found that the salesman, Mr King, should have been classified as a worker and his claim of £27,000 of holiday pay has been approved.
This latest decision could have significant implications and serious impacts on firms in the so-called ‘gig economy’ such as couriers, ride hailing drivers, food delivery drivers, taxi drivers and even video producers. By the ‘gig economy’ we mean workers that are paid for the ‘gigs’ they do, instead of receiving a regular salary. For example delivery drivers that are paid per item they deliver.
Those workers in the ‘gig economy’ are classed as independent contractors and this means that they have no protection against unfair dismissal, no rights to redundancy packages and payments, no right to receive the national minimum wage, sick pay or even paid holiday.
The court ruled that ‘an employer that does not allow a worker to exercise his or her rights to paid annual leave must bear the consequences’; the European court was asked whether the EU law allowed him to claim payment for missed holidays during his entire service to the company and it was agreed there was no time limit for the employees claim.
This decision opens the door for employees with similar cases and could cause business owners a lot of stress and cost a lot of money; Mr King’s claim gained him £27,000 in unpaid holiday.
Dr Moyer-Lee, the Head of the IWGB trade union has been quoted saying that this bombshell judgement is a huge game changer for the so-called ‘gig economy’ as the law is now recognising the massive unpaid debt of ‘gig economy’ companies to their workers and member of the IWGB will be coming to collect this.
If you have concerns that this latest court case could affect business or you use self-employed workers for long periods of time then please contact our HR Department at aspire cambridge and we can best discuss your plan of action to ensure the best for your business and your worker.