Self-Employed’ Plumber Entitled to Basic Workers Rights (UK)

13/02/2017

The Court of Appeal became the most senior court to take the worker’s viewpoint in a ‘flexible workforce’ dispute when it agreed with an Employment Tribunal ruling that a self-employed plumber could cut his 5 days working week to 3 days after a heart attack because he was entitled to ‘basic workers’ rights’.

Gary Smith was Vat-registered and paying tax on a self-employed basis but working exclusively with Charlie Mullins’ high-profile Pimlico Plumbers when he had a heart attack. In addition to refusing to let him cut his company week from the 5 days he had originally contracted for, the firm took away his company van and – according to Mr Smith – dismissed him.

In a case hinging on whether he was a self-employed contractor or a worker for the company, an employment tribunal held he was a worker and therefore entitled to basic workers’ rights, including the minimum wage, paid holidays and the ability to bring discrimination claims.

The Court of Appeal agreed – ‘Pimlico Plumbers Ltd & Charlie Mullins v Gary Smith, Court of Appeal, Judgment 10 February 2017’.

While Mr Smith’s solicitor argued that the case had clarified the different models of working that existed, one of the Court of Appeal judges, Lord Underhill, urged caution when he commented:–

“Although employment lawyers will inevitably be interested in this case – the question of when a relationship is genuinely casual being a very live one at present – they should be careful about trying to draw any very general conclusions from it.”

A government commission is currently looking at the issue of workers’ rights in the ‘gig’ economy. In addition to job security, pension, holiday and parental leave it is looking at ‘employer freedoms and obligations.’

EMPLOYMENT STATUS IN THE GIG ECONOMY (UK)

The three main types of employment status – employees, workers and self-employed – are explained in revised guidance published by Acas to help employers and their staff understand employment arrangements in the modern workplace and the rights and obligations that go with them.

The rapid growth of the ‘gig economy working’, the ongoing, government-commissioned review on modern workplaces and high profile court cases (eg ‘Pimlico Plumbers Ltd & Charlie Mullins v Gary Smith, Court of Appeal, Judgment 10 February 2017’) all combine to make employment status a confusing area of law.

‘Employment status’ aims to provide clarity on the three main types of employment status in particular and illustrate how a working person’s employment rights depend on their status.

For example, workers’ basic entitlements include NMW, holiday pay and protection against unlawful discrimination. Employees have the same rights but can also be entitled to maternity/paternity pay, itemised pay slips and the right to request flexible working.

There is greater focus on self-employment and umbrella companies than in previous Acas guidance. It also explains the status of

  • agency workers
  • apprentices
  • fixed term workers
  • peripatetic workers (workers with no fixed work base)
  • piece workers
  • volunteers, work experience and internships
  • zero hours contract workers