Investigation into grey area of self-employment 


News of an investigation by HM Revenue and Customs (HMRC) into pay rates for delivery drivers at courier company Hermes means a spotlight will be shone on the grey area surrounding employment status and statutory minimum wage rates.


The company is facing an investigation into allegations that it pays drivers less than the National Living Wage, by classifying them as self-employed rather than employees.


It has also been claimed that drivers do not receive benefits, such as a holiday allowance or sick pay, and risk losing their jobs if they are unable to come to work for any reason.


The allegations echo recent media coverage of delivery company Deliveroo, and a case involving a number of cycle courier businesses that is expected to be heard at an employment tribunal shortly.


In addition, a ruling is awaited in an employment tribunal case involving 19 drivers working for the taxi-hailing app Uber over their employment status. 


But HMRC’s intervention in the issue of self-employment has been seen as particularly significant.


The investigation into Hermes coincides with a separate announcement from HMRC that it would scrutinise employment arrangements relating to freelance workers who were being used to fill what would otherwise have been permanent roles. 


www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2016/10/21/hermes-case-highlights-need-for-organisations-to-review-employment-status.aspx