HR · 13 January 2017

CitySprint gig economy ruling fires warning shot to employers

CitySprint
CitySprint employs around 3, 500 self-employed workers
The decision to classify a courier working for delivery company CitySprint as a full-time employee has sent another warning to UK businesses employing self-employed and freelance workers on a full-time basis.

The Central London Employment Tribual has decided that CitySprint had incorrectly classified Maggie Dewhurst as a freelance worker. Subsequently, the company was ordered to provide Dewhurst with typical employment rights such as sick pay and annual leave.

The ruling represented the latest development in the scrutiny of the so-called gig economy.

Tribunal judge Joanna Wade stated that the relationship was not a commercial venture between two corporate entities, as claimed by CitySprint.

The ruling demonstrated the UK legal system’s commitment to enforcing a consistent approach to gig economy workers. The CitySprint case follows the victory of Uber drivers to be classified as full-time employees of the taxI app, entitling them to basic workplace rights.

CitySprint currently employs 3, 500 ‘self-employed? couriers in Britain, and the ruling could shake up the ways in which similar companies operate.

Commenting on the impact of the ruling, Anna McCaffrey, an employment law expert at law firm Taylor Wessing, warned that now was the time for business owners dependent on self-employed workers to protect themselves.


 
TAGS:

ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

Franchising