As a rock music fan who has attended many amazing concerts over the years, I have always felt the term “gig” when attached to “economy” glamorised something that was, in essence, uncertain, precarious and had the potential to be not particularly lucrative.
So I was glad when I read that a court had ruled against Pimlico Plumbers. Gary Smith had worked as a ‘gig’ or self-employed plumber with Pimlico for just over five years. After suffering a heart attack he asked for his gigs, or days, to be cut from five a week to three.
Pimlico said no because they didn’t think he was an employee. They also took back his company van.
Reality was a shift swap
In addition, the tribunal found Pimlico had a control over Smith’s “appearance and the cleanliness of his uniform,” and over his ability to compete with Pimlico when he stopped carryingr out jobs for it.
The case went to the employment appeal tribunal and the court of appeal, but the decision remained – he was a worker. This is important when one considers the growing self-employed or gig sector in the UK.
Gig economy employment
Many are now calling for clear regulation to alleviate confusion over worker status.
From the point of view of companies, David Harmer, tax consultancy manager at Abbey Tax division, Accountax, companies need to understand when someone can be considered self-employed for employment law, as well as for HMRC’s purposes, which may be different!
“Remember, although your contracts may be watertight the courts always look at the reality of the relationship – not just the words.”
Paving the way for radical reform
The Pimlico decision may well pave the way for radical reform.
Harmer says Pimlico Plumbers’ appeal was hindered by the written contracts it had in place with Smith; the courts highlighted the issues around wording of the contracts, the lack of express written confirmation in respect of substitution and control and the style of language used in the contract itself.
The written contract did not establish the self-employed relationship desired.
Properly drafted contract essential
Harmer adds: “In our opinion, this judgment should not be seen as the end of the gig economy.
“The facts of this case are vastly different to other high profile cases regarding drivers and they do not automatically set a precedent by which these other cases must be judged.
“This case does, however, highlight the fundamental importance of having a properly drafted contract which provides clear and express rights and intentions.
“We have been strongly advocating this message, which is why we always thoroughly review contracts and working practices to ensure our clients have a robust written contract they can rely upon.”