Employment status

An employment tribunal held that an Excel cycle courier was a worker rather than being in business on their own account, therefore succeeding in their claim for a week’s holiday pay.

The case applies the recent Court of Appeal decision in Pimlico Plumbers Ltd v Smith [2017] EWCA Civ 51.

(Boxer v Excel Group Services Ltd ET/3200365/2016)

How can Crimson Crab help?

Workers' Status

The Court of Appeal have decided that a plumber was a worker for the purposes of the Employment Rights Act 1996 and the Working Time Regulations 1998 as well as an employee within the extended meaning of the term in the Equality Act 2010. This was in spite of the plumber’s contract labelling him as an independent contractor.

There is significant interest in worker status at present, especially following the employment tribunal decisions in the Uber and CitySprint situations and in light of the ongoing Taylor review into modern working practices.

(Pimlico Plumbers Ltd and Mullins v Smith [2017] EWCA Civ 51)

We are employing someone for the first time what do we need to do?

There are 7 things you need to do when employing staff for the first time.

  1. Decide how much to pay someone – you must pay your employee at least the National Minimum Wage.
  2. Check if someone has the legal right to work in the UK. You may have to do other employment checks as well.
  3. Check if you need to apply for a DBS check (formerly known as a CRB check) if you work in a field that requires one, eg with vulnerable people or security.
  4. Get employment insurance – you need employers’ liability insurance as soon as you become an employer.
  5. Send details of the job (including terms and conditions) in writing to your employee. You need to give your employee a written statement of employment if you’re employing someone for more than 1 month.
  6. Tell HM Revenue and Customs (HMRC) by registering as an employer – you can do this up to 4 weeks before you pay your new staff.
  7. Check if you need to automatically enrol your staff into a workplace pension scheme.

(July 2016 Question 1)