The UK Employment Appeal Tribunal has upheld the Employment Tribunal’s finding that Uber drivers are “workers”. It rejected Uber’s argument that Uber is simply a technology platform acting as an agent to connect self-employed Uber drivers with users of the ride-hailing app.
What Is the Issue?
The United Kingdom recognises three categories of employment status: employees, workers and self-employed contractors, each with varying levels of protection under employment law. Employees and workers are afforded greater protection than self-employed contractors, with employees having the full suite of UK employment rights. Workers are entitled to core rights such as statutory holidays, sick pay and breaks, and national minimum wage.
A significant judgment delivered on July 26, 2017, by the UK Supreme Court increases the likelihood of employment claims being brought in the future and is of significance to all organizations employing staff in the United Kingdom.
The compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation increased as of 6 April 2015. The key changes are set out below. What Does This Mean for Employers?
The changes took effect on 6 April 2015 and apply to dismissals that occurred on, or will occur after, that date.
It is important for employers to note that
If an employee was given notice prior to 6 April 2015, but the notice period expired on 6 April or will expire on a future date, the new limits above will apply to that dismissal.
If an employee’s employment is terminated by means of a payment in lieu of notice, the effective date of termination (EDT) is the actual date the dismissal takes effect, plus the amount of statutory notice applicable to the employee, i.e., one week per year of employment, up to a maximum of 12 weeks. If the statutory notice would take the EDT to or beyond 6 April 2015, the new limits will apply.
An employer’s exposure in the event of an unfair dismissal claim will also rise and should therefore be factored into decision-making regarding litigation or settlement strategies.
In the latest in a long-running series of cases on holiday pay, the Employment Tribunal has handed down its first judgment in Lock v British Gas Trading Limited.
This judgment confirms the principle that workers paid commission should receive holiday pay at a rate reflecting normal income, which can include commission, rather than basic salary only.
Subscribe
