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The Independent Workers’ Union of Great Britain (IWGB) will take on food delivery giant Deliveroo in the Supreme Court in an attempt to secure better employment rights for the company’s riders.
The court case will centre on the employment status of Deliveroo riders and the employment status they’re entitled to.https://deliveroo.co.uk/
The controversial changes to IR35 legislation, which affect contractors working in the public sector, have been in place for more than two months now. Already it is clear that the new tax policy has had a number of unintended consequences that have made life more difficult for contractors and the public sector organisations that want to employ them.
The so-called ‘case of the year for UK employment law’ will see a group of Uber taxi drivers go to a tribunal to argue that they are not self-employed and so are entitled to employment benefits like sick pay and holiday pay.
Experts believe that the outcome of this legal challenge could send a shockwave through the jobs market. The ruling could influence employment practices in a range of sectors and industries.
Part of the HM Treasury, The Office of Tax Simplification (OTS), has launched an Employment Status Review.
Some self-employed contractors lost 30% of their income in the wake of IR35 reforms that took effect in the public sector this in April.
As the dust settles around the changes IT recruitment company, CW Jobs, found that more than 70% of their clients saw a reduction in income after the IR35 reforms.
Of these contractors, a quarter saw a reduction close to 30%.
The IR35 reforms mean that contractors who work solely or primarily for public sector bodies are being taxed as if they were regular employees of that company. But are no receiving any of the accompanying benefits such as such pay or holiday entitlement.
Courier company Hermes is the latest target in a long-running debate around employment status that has previously engulfed Uber and Deliveroo.
HMRC has reportedly stepped up its investigation into Hermes, which classifies it couriers as self-employed even though their working patterns don’t reflect this.
Separately, the GMB trade union has brought an employment rights lawsuit against the company vowing to fight against ‘bogus self-employment’ and the ‘gig economy’.
On 3rd March 2015 the Office of Tax Simplification (OTS) issued its report headed “Employment Status Report”. The aim of the report was to tackle the complexities in deciding whether a person was employed or self-employed for tax purposes and the issues on employment rights particularly for the low paid.
