Following suit from the high-profile Uber, Pimlico Plumbers, Deliveroo and CitySprint cases, Excel Group Services is the latest company to have been ousted for incorrectly labelling a worker as self-employed.
A cycle courier, classed as a self-employed contractor by Excel, brought a claim when he was not permitted holiday pay. The Employment Tribunal found him to be a worker, and therefore entitled to holiday pay, as the reality of his working conditions did not align with his contract.
Employees, workers and self-employed contractors have different employment rights.
Workers are entitled to National Minimum Wage, statutory paid holiday and rest breaks. They are also auto-enrolled into a pension scheme.
Self-employed contractors have a contract with a company to provide services for them and do not benefit from the same entitlements.
Employers must understand the differences and accurately reflect this in the contractual documentation.