This week, in the case of Addison Lee Limited v Lange and others, the Employment Appeal Tribunal upheld the Employment Tribunal’s previous decision that three drivers are workers – rather than independent contractors, as stated in their contracts. As a result, they’re entitled to both holiday pay and the national minimum wage.
The Tribunal held that it was unrealistic to think that any of the drivers had their own businesses and were simply contracting to work with Addison Lee; it was far more likely that they are subordinates to the company.
There were several factors that influenced the decision, including:
- Drivers have a dress code and code of conduct
- Drivers need to work 25 to 30 hours a week to cover hiring costs and must complete a minimum amount of work a week to avoid a service charge
- Driver’s have no control over fares
- They must undergo comprehensive recruitment, induction, and training programmes
There are no surprises with this decision. It’s just the latest in a series of employment status cases, like the recent Pimlico Plumbers Case. As the gig economy continues to develop, we’re likely to see lots more of these cases rumbling on.
