Plumber’s victory for workers’ rights ‘will impact gig economy’
A PLUMBER yesterday won his legal battle for working rights in a landmark ruling expected to have huge ramifications for workers on self-employment contracts.
Gary Smith had worked solely for Pimlico Plumbers for six years. The UK’s highest court ruled he was entitled to workers’ rights despite being VAT registered and paying self-employed tax.
The decision will potentially have an impact on the rights of many people classified as independent contractors, many of whom work for firms in the so-called “gig economy”.
An employment tribunal concluded Mr Smith was a worker entitled to employment rights, such as holiday and sick pay, the court ruled.
Mr Smith previously won a number of court cases which were upheld unanimously by five Supreme Court justices, who yesterday rejected an appeal by Pimlico Plumbers.
Announcing the decision, Lord Wilson said that, importantly, Pimlico’s terms “enabled the company to exercise tight administrative control over him during his periods of work; to impose fierce conditions on when and how much it paid to him, which were described at one point as his wages; and to restrict his ability to compete with it for plumbing work following any termination of their relationship”.
Heating engineer Mr Smith was one of 125 contractors Pimlico Plumbers could call on to carry out jobs. He had a company uniform and a van which he rented.
He claimed that, after suffering a heart attack in 2011 and trying to reduce his hours, he was unfairly dismissed.
An employment tribunal made a preliminary finding that he was a “worker” within the meaning of the 1996 Employment Rights Act.
That decision was upheld by the Employment Appeal Tribunal and again by the Court of Appeal in January last year.
Mr Smith will now be able to go ahead with his employment tribunal claim for unfair dismissal against Pimlico Plumbers as a “worker”.
Pimlico Plumbers chief executive Charlie Mullins attacked the court’s ruling as “disgraceful”, saying outside court: “It was a terrible decision. The case is not over.
“I will be talking to my lawyers. We could possibly go to a European court of law.”
Mr Smith said he would celebrate with a drink.
He added: “I’m glad it’s all over. It has been quite stressful and arduous.”
He is now a “proper” selfemployed plumber, he said. TUC General Secretary Frances O’Grady said the case exposed “how widely sham self-employment has spread” and urged a government crackdown.
At the moment it is up to an individual to prove they are employed and entitled to workers’ rights.
The TUC wants the “burden of proof” to be reversed so workers benefit from rights “unless the employer can show they are genuinely self-employed”.