A recent case which is being hailed as a landmark judgement has led to organisations reviewing the way they treat those who they consider to be contractors, consultants or freelancers. The case was brought against Uber, the US based on-demand taxi organisation.
Two drivers brought the claim stating that they felt that they were ‘workers’ and not contractors and should therefore be paid the National Minimum Wage (NMW) and receive paid holiday.
Deciding whether your self-employed contractors are in fact this, or instead a worker or employee, is not straightforward to answer, as firstly an individual’s status in employment law may differ from their status in tax and pension law. However, there are some basic tests that organisations can use to ensure they do not find themselves in the same position as Uber. For a more detailed article on the case and the tests that you can use please email streetshr@streetsweb.co.uk
We recommend that all companies who use self-employed contractors take this opportunity to review their contractors based on the outcome of this case. Beststart Human Resources, a Streets HR service provider, can provide you with tailored advice on this case and how it might impact your business.
If you would like to discuss your terms of employment or any other matter please email streetshr@streetsweb.co.uk
