Minicab company Addison Lee has been making headlines after a tribunal ruled that its drivers are workers, not self-employed contractors. It now looks likely that the company will have to make payments to each driver of around £10,000, relating to unpaid holiday pay and making wages up to the national minimum, with the total bill expected to hit around £39 million.
This is the third high-profile case of this kind in the last 12 months, after Uber received a similar landmark ruling in November 2017 (see our blog: What Uber’s Landmark Ruling Tells Us About Contracting Limited Company Workers) and courier giant, Hermes, was charged earlier this year. Both companies were found guilty of wrongly classing drivers as ‘self-employed’, thereby avoiding the responsibilities and obligations that accompany employment, such as national minimum wage and holiday pay.
For transport and distribution businesses who use limited company drivers and workers to supplement their core team, conflicts surrounding employment status are a growing concern. So, what can these businesses do to protect themselves from falling into the employment status trap?
One option is to limit your liability by using an agency, such as Savanna, to supply your temporary drivers and warehouse staff. By using an agency, the contract of employment is between the contractor and the agency, not directly with your company, therefore protecting you from the above issues. A specialist driver recruitment agency will take care of all of the admin surrounding employing temporary drivers (like legally-required Intermediary Reports) and ensure that they are receiving the benefits they should be.
If your business requires temporary LGV (HGV) drivers call Savanna Driver Recruitment on: 0330 335 8367 or email info@mysavanna.com . We’d be happy to discuss your requirements and provide you with a temporary driver who is suitable for your vacancy.
If you’re a driver looking for work, we can offer good rates of pay and regular hours, so please get in touch via our contact form.
If you’d like to read more about employment status, see our blog: Understanding Employment Status: What you need to be aware of when using sub-contractors or self-employed drivers
See also: https://www.theguardian.com/money/2018/nov/14/tribunal-upholds-ruling-on-addison-lee-drivers-rights