Blog Search

Archives

Employment status case turned on right of substitution

Employment status tax cases often make the headlines in the professional press and the recent case involving Deliveroo riders was no exception. The meal delivery firm won the case in the Central Arbitration Committee (CAC), confirming that its riders are not ‘workers’. This is the latest challenge to the employment status of ‘gig economy’ workers.

In this case, the Independent Workers Union of Great Britain (IWGB) sought to argue that riders were workers, so that they could claim union recognition, thus affording them certain collective rights regarding the minimum wage entitlement, holiday and sick pay, and pension contributions.

The CAC rejected the claim that the riders were ‘workers’, hinging the case on the riders’ ‘ability to turn down a job both before and after accepting it’.

Historically, a genuine right of substitution, whether ‘sideways’ to someone of similar seniority or by way of delegation to a junior, has been regarded as one of the strongest factors favouring self-employment.

The case follows a number of claims brought by workers in the ‘gig’ economy demanding rights such as holiday pay, the minimum wage and pensions contributions. Drivers at Uber won a recent victory when the company lost an appeal at the Employment Appeal Tribunal against an earlier decision to grant them workers’ rights.

The transcript from the Deliveroo riders’ case can be found here.

  • Latest news and testimonials

  • Latest News

    • September Q&A

      Q. I have two small businesses which are treated as a group for VAT purposes, so we only submit a single VAT return covering both …

      Read more
    • Making Tax Digital for Business: update

      In July, the Government confirmed that the Summer Finance Bill would be published in September, with the measures dropped from the pre-election Finance Bill being reintroduced …

      Read more
  • Testimonials

    • Partner – Solicitor

      I have worked with SBL over the last 10 years on numerous matters involving owner-managed business. They are professional, personable, knowledgeable and work incredibly hard to provide the best advice to their clients. I would have no hesitation in recommending SBL.

      Read more
    • Director – Networking Company

      SBL are a professional Accountancy Firm and are exceptionally up to date with all legislations.  SBL know their clients extremely well and what will work best for their business. SBL understands business and how business works and they deliver the very best considered professional advice.

      Read more
    • Director – Retail/Fashion Company

      SBL have provided auditing and other accounting services for our company for more than 10 years. They not only offered excellent support from a professional accountant company, but also delivered forward-thinking advice on how to improve our business.