The London Central Employment Tribunal has ruled that a former bike courier of Addison Lee was a ‘worker’ not an “independent contractor” and therefore was entitled to employment rights that were not afforded to him, such as holiday pay and the national minimum wage.
Chris Gascoigne worked for Addison Lee as a bike courier for seven years and took Addison Lee to the employment tribunal over the matter this year, supported by the Independent Workers Union of Great Britain (IWGB). He claimed that he was engaged by Addison Lee as a ‘worker’, thus entitled to holiday pay. Addison Lee contested the claim and argued that Gascoigne was an independent contractor and therefore ‘self-employed’. Employment Judge Joanna Wade was critical of Addison Lee’s use of contradictory language which she thought was designed to avoid Gascoigne being treated as a worker. He used branded equipment and wore Addison Lee T-shirts. In addition, he responded to a central controller and had no ‘decline’ option when a job was offered to him. Despite this, the contract stated that he was an independent contractor and not a worker. The Employment Judge did not find any evidence that Gascoigne worked independently and on an ad hoc basis.
The car and courier company were disappointed by the decision and said it will “carefully review” it. The organisation also added that it is “committed to maintaining a flexible and fair relationship with cycle couriers”, suggesting that this was an isolated case and not reflective of its treatment of other couriers and drivers. The IWGB’s general secretary Dr Jason Mayor-Lee suggested that this was another damning decision for employers in the so-called gig economy who he argues “have been choosing to unlawfully deprive their workers of rights.” He concluded that it is clear that “people in the so-called gig-economy are workers.”
The case follows similar verdicts against Uber, City Sprint, Excel and eCourier, and reinforces the rights of people working in the gig economy, who until recently had been unprotected and neglected in the context of key employment rights. It was also recently decided that couriers of emergency blood supplies and passports are ‘workers’ and entitled to improved employment rights.
Although the determination of employment status is not an exact science, this decision reinforces the view that individuals engaged in the ‘gig’ industries are not independent contractors and are ‘workers’. In deciding on the employment status of a claimant, the tribunal will examine how the relationship operates in practice rather than focussing purely on the wording of the contract. In this case, Mr Gascoigne was not considered to be truly independent of Addison as befitting someone who was self-employed. Whilst this is a victory for individuals, businesses in the ‘gig’ industries will have to review their contracts and business models to ensure that the flexibility they desire is achieved.
Anthony Thompson, the author, is a Director in the Employment department at Duncan Lewis Solicitors. With over 20 years’ experience, Anthony has advised and supported businesses and individuals on all aspects of the working relationship, including both contentious and non-contentious matters. He is also an advocate, having achieved notable successes representing clients in employment tribunals, and has negotiated significant settlements at private and judicial mediations.
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