Employment Legislation update: February 2017

Hot on the heels of recent cases about the employment status of individuals, the Court of Appeal has confirmed that a plumber was a worker and not self-employed.

Pimlico Plumbers & another v Smith is an important and highly fact-sensitive case which potentially has implications for businesses using self-employed individuals.  To customers, these individuals appear to be working for the business but to the business they are independent contractors.

Pimlico Plumbing is a plumbing and maintenance company which had over 120 people like Mr Smith carrying out work on its behalf.  The agreement between the business and the plumber contained provisions about personal appearance, working time, keeping in touch with the control room, timesheets, payment and purchase of materials.  He was issued with an ID card and uniform with logo and mobile phone with charges for this deducted from wages.

There were also provisions relating to undertaking private work and using information gained while working for the company.

Mr Smith could choose when he worked and which jobs he took.  He provided his own tools and equipment and looked after his own tax and insurance.  If he was unable to carry out the work he was not able to send a substitute and he was not guaranteed a minimum number of hours.

After a heart attack, Mr Smith claimed he was dismissed and brought claims against the company.  His claim for unfair dismissal failed as he was not an employee, but he could claim disability discrimination if he was a worker.

The recent ruling confirmed an earlier decision that Smith was an integral part of the business and more than an independent contractor.  As a worker, he was entitled to minimum wage, paid annual leave and other procedural rights.

This is a significant case if you use ‘self-employed’ individuals and at the present time there are other legal challenges.  The Government is also undertaking a review of workers’ rights in the so-called ‘gig’ economy.

If you would like further information or support for your business please contact Sheila Watson on 01429 857082, sheila.watson@hartlepool.gov.uk

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