According to a recent employment tribunal ruling, Hermes (EPA: RMS) couriers are to be treated as workers and not independent contractors.
In a significant step for the controversial gig economy, couriers for the group are now entitled to receive the minimum wage and holiday pay.
“This is yet another ruling that shows the gig economy for what it is – old fashioned exploitation under a shiny new facade,” said Tim Roache, the GMB union general secretary.
“Bosses can’t just pick and choose which laws to obey. Workers’ right were hard won, GMB isn’t about to sit back and let them be eroded or removed by the latest loophole employers have come up with to make a few extra quid.”
“Not only will this judgement directly affect more than 14,000 Hermes couriers across the country, it’s another nail in the coffin of the exploitative bogus self-employment model which is increasingly rife across the UK.”
The case was taken to the tribunal by 65 Hermes employees and the ruling will affect the 14,500 Hermes couriers who are engaged under the same contract.
Hermes has indicated plans to appeal against the judgment.
A spokesperson said: “We will carefully review the tribunal’s decision, but we are likely to appeal it given that it goes against previous decisions, our understanding of the witness evidence and what we believe the law to be.”
“Nevertheless we have always been fully prepared for any outcome of this decision and its impact on 15 couriers and former couriers. In the meantime it is business as usual and we remain committed to providing couriers with the benefits of flexible working and the ability to earn well in excess of the National Living Wage.”
The case in Leeds reflects verdicts made in cases for employees of Uber, eCourier and Addison Lee.