Gig economy Articles

What does self-employed plumber ruling mean?

The Court of Appeal has ruled that a plumber, described by his employer as ‘self-employed’ should receive some of the same basic employment rights as a ‘worker’ for the company.

Brought against Pimlico Plumbers, London’s largest independent plumbing company, it is thought that the case will have implications for other companies that employ lots of self-employed workers.

A similar court battle was won by two Uber drivers last year in a landmark ruling for so-called ‘gig economy’ workers.

But some experts have warned that it is too early to make sweeping generalisations about self-employed contractors in other industries.

marketing | 31 October 2016
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A landmark court ruling has found that Uber drivers are not self-employed contractors and can be classed as employees.

The employment tribunal ruled that the taxi app drivers are entitled to minimum wage and other benefits.

It was the case of the decade for employment law – pitting the popular lift hailing app company against one of Britain’s most powerful unions in a tribunal case that threatens to shatter the so-called ‘gig economy.’

The ruling isn’t just important for Uber, its drivers and its customers - it could also have more far reaching consequences for other self-employed contractors and their employers.

In this blog post we take a closer look at the case and evaluate some of the potential consequences of the ruling.

A study completed as part of a broader investigation into the ‘gig economy’ could end up costing you up to £1,000 in National Insurance Contributions (NICs) if you work more than one job.

A survey, which was commissioned by the government, has concluded by recommending wholesale reform of the NIC system for employed and self-employed people with multiple jobs.

If applied, the recommendations would see NI applied on a ‘per person basis’, which would effectively mean a tax increase of up to £19 for some multiple job workers (nearly £1,000 per year).

Completed by the Resolution Foundation, the study represents part of a broader examination into tax and employment regulations in the modern era.

It found that many of the assumptions underpinning the so-called ‘gig economy’ were false. 

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.