Originally written by Jill Bottomley on Small Business
Last week’s long-awaited Supreme Court ruling in the Uber case has far reaching ramifications for any small business that engages self-employed individuals, in all sectors.
Drivers, engaged by Uber on a self-employed basis, brought a claim that they were not in fact self-employed; instead, they claimed they were “workers” and were therefore entitled to statutory pay, compliant with the National Minimum Wage (NMW) for all “working” time. Included in the claim were rights to statutory benefits, such as paid holidays.
And the court has ruled in the drivers’ favour, potentially costing Uber up to £20,000 per driver.
Uber’s defence was that its arrangement with drivers was typical of the private hire or “gig-economy” industry.
However the implications of the ruling may extend to any which currently engages self-employed consultants or independent contractors.
>See also: What are the benefits of agile working? – a small business guide
The crux of the issue
Many would imagine that a someone found to be a “worker” in this case would be classed as an employee, not as self-employed. However, confusion on these categorisations is where the crux of the whole issue lies.
A worker is not the same as an employee. The status can best