Victory for gig economy in Hermes employment tribunal

A UK employment tribunal has ruled that couriers working for Hermes, the delivery firm, are not self employed and should be classified as workers.

In yet another victory for the gig economy, which recently saw Pimlico Plumbers lose a similar battle, the employment tribunal ruled that Hermes couriers are entitled to receive the minimum wage and holiday pay, and to reclaim any unlawful deductions from their wages, taken due to their incorrect classification as self employed.

Frank Field, who chairs the House of Commons Works and Pension Committee and is currently involved with an inquiry into the employment status of Deliveroo couriers, described the tribunal decision as being “among the most substantial judicial interventions ever to support vulnerable workers in this country.”

A spokesperson for Hermes says: “We will carefully review the tribunal’s decision, but we are likely to appeal it given that it goes against previous decisions, our understanding of the witness evidence and what we believe the law to be.”

At Beavis Morgan, we understand the challenges faced by business owners. We work with many small and medium sized businesses (SMEs) across a wide range of industry sectors, guiding them though the various stages of business life from start up to exit and all the challenges in between.

Should you require a review of your business’ payroll records and any contracts with self employed consultants, please get in touch with us. Our employment experts will provide guidance on whether or not we feel your company is at risk of challenge by HMRC under the employment regulations.

Contact Steve Govey or your usual Beavis Morgan Partner for further information about how we can assist you and your business.