Gig economy: Two Parliamentary Committees urge legislation to regulate gig economy and latest rulings in Deliveroo and Uber cases
The Work and Pensions and BEIS Select Committees have published a draft Bill for the Government to consider which seeks to implement some of the recommendations of the Taylor Review. In addition, Uber has lost its appeal against an employment tribunal's decision that the claimant drivers were workers, whilst Deliveroo have succeeded in establishing that its riders in Camden were self-employed. Bill published by Parliamentary Committees The Work and Pensions and BEIS Select Committees both launched inquiries into modern employment practices which were cut short by the 2017 general election. They have now reconvened and published a joint report and draft Bill to implement some of the recommendations of the Taylor Review. The proposals in the Bill include:
- new definitions of employment, worker and self-employed status
- a presumption that individuals have worker status, to apply to companies who have a self-employed workforce above a certain size (to be defined in secondary legislation)
- piloting a scheme where employers pay a premium rate for non-guaranteed hours
- allowing class actions in misclassification claims
- entitling workers to a statement of terms within 7 days of starting work
The Bill has been drawn up as a suggestion only, and will not necessarily be adopted by the Government. The Government's response to the Taylor Review is now expected some time next year (the original proposal for it was to be published before the end of the year) and any official proposals will be subject to extensive consultation before any draft legislation is brought forward. Uber worker status claim Uber has lost its appeal in the Employment Appeal Tribunal against an employment tribunal's decision that, on the facts, the claimant drivers were workers for the purposes of national minimum wage, holiday pay and whistleblower protection. The EAT also upheld the tribunal's decision that the claimant drivers started work as soon as they were within their territory, had the Uber App switched on and were ready and willing to accept trips. Uber's application to leapfrog the Court of Appeal and appeal straight to the Supreme Court has been refused so the appeal will now be heard by the Court of Appeal next year. In the meantime, the Pimlico Plumbers case, is due to be heard in the Supreme Court in February. Deliveroo union recognition bid The Central Arbitration Committee has rejected the bid by the Independent Workers' Union of Great Britain to be recognised by Deliveroo. The IWGB needed to establish that the Deliveroo riders had worker status but was unable to do so on the facts. The CAC found that the riders were self-employed on the basis that they have the genuine right to engage a substitute (whose identity is not known or approved by Deliveroo) before or after accepting a delivery. We do not know yet if the IWGB intend to challenge this decision further.