Fact Service June 2018

Issue 26

Tribunal ruling favours Hermes couriers


The legal decisions continue to stack up against gig economy companies that claim staff are “self-employed.


An employment tribunal has ruled that couriers working for delivery organisation Hermes are workers rather than independent contractors, which entitles them to employment rights, such as the National Minimum Wage and holiday pay.


The case was brought by the GMB general union on behalf of 65 couriers, although the decision is expected to impact on Hermes’ wider network of 14,500 couriers who are engaged under the same contract.


There will be a further tribunal hearing to calculate the holiday pay, National Minimum Wage and any unlawful deductions that couriers should receive.


Tim Roache, general secretary of the GMB, said: “This is yet another ruling that shows the gig economy for what it is; old-fashioned exploitation under a shiny new façade. Bosses can’t just pick and choose which laws to obey. Workers’ [rights] were hard won; GMB isn’t about to sit back and let them be eroded or removed by the latest loophole employers have come up with to make a few extra quid.


“Not only will this judgment directly affect more than 14,000 Hermes couriers across the country, it’s another nail in the coffin of the exploitative bogus self-employment model which is increasingly rife across the UK. We urge Hermes to sit down with us and have a meaningful discussion.”


https://www.employeebenefits.co.uk/issues/june-2018/employment-tribunal-hermes-employment-status