Gig economy update

Tuesday 11 May 2021

In another blow for companies operating in the gig economy, the Court of Appeal (COA) has found against minicab firm Addison Lee in the latest stage of the litigation against it relating to the employment status of its drivers.

The effect of this (subject to any further appeal) is that the drivers qualify as having ‘worker’ status, which entitles them to rights such as holiday pay and entitlement to receive the National Minimum Wage.

The claim was originally lodged in 2017 by three of the firm’s drivers who claimed they were workers. The Employment Tribunal (ET) found in their favour, referring to the 2011 case of Autoclenz v Belcher and considering factors such as the interview and recruitment process and the fact that the drivers were required to complete a probationary period at the start of their engagement with the firm.

The ET also highlighted the existence of an overarching contract between the firm and its drivers, which meant the drivers were personally undertaking driving services for the firm when logging onto its booking system.

Addison Lee appealed to the Employment Appeal Tribunal (EAT), but it agreed with the findings of the ET. This included the finding that, because drivers would automatically have jobs allocated to them through their portable computers and, if they refused a job, sanctions could follow, drivers were ‘working’ for the purposes of the Working Time Regulations 1998 throughout the time they were logged in, whether or not they were carrying passengers at the time.

Addison Lee appealed once again to the COA, which has now agreed with the rulings of both the ET and EAT. This ruling means that thousands of drivers could be entitled to recover historic holiday pay and underpayments relating to national minimum wage.

Addison Lee can appeal the judgment once more to the Supreme Court.

If you have any questions about the gig economy and how this judgment affects you, please email or call our Employment Law team today on 0113 207 0000.