The Independent

Hermes delivery service faces inquiry over ‘low pay’

- BEN CHAPMAN

The UK’s top tax official has referred Hermes to HM Revenue & Customs’ compliance department after allegation­s that it paid workers less than minimum wage and incorrectl­y classed them as “self-employed”.

As many as 78 couriers complained to Frank Field, chair of the House of Commons Work and Pensions Select Committee, stating that they received no holiday or sick pay and that they feared being sacked if they missed a shift due to illness. Hermes drivers, who are paid per delivery, say the company allocated unrealisti­cally short amounts of time to complete each job so they were paid as low as £5.50 per hour. The

National Minimum Wage is £6.70 for over-21s.

Edward Troup said he could not comment on the tax affairs of any one company because of strict confidenti­ality rules. However, as a general principle, he said: “Individual­s cannot be opted out of employment rights and protection­s, simply by calling them ‘self employed’. We are committed to tackling false self-employment.” HMRC would take “all necessary steps” to ensure companies pay the correct tax, National Insurance and penalties if they misclassif­ied staff as self-employed, he said. Mr Troup added that anyone who is concerned they are not receiving the minimum wage should contact the ACAS, the body which handles employment disputes.

Jane Ellison, financial secretary to the Treasury, said last week: “The Government takes false selfemploy­ment very seriously and is committed to taking strong action where companies, to reduce their costs, force their staff down routes which deny them the employment rights and benefits they are entitled to.”

The gig economy, where workers are paid per task rather than by the hour is under increasing scrutiny. Uber drivers took the ride-sharing company to court, claiming that they are employees and so are entitled to statutory benefits. The case has been heard and the sides are awaiting a judgement. A ruling in favour of the drivers could have huge ramificati­ons for firms such as Deliveroo, Uber and Hermes which rely on a large pool of casual workers. Last year the Citizens Advice Bureau estimated almost half a million people could be wrongly classed as self-employed, depriving them of close to £1bn in holiday pay and National Insurance contributi­ons.

Hermes said it would comply with any potential investigat­ion, and pointed out that its own minimum wage standard is higher than legally required. A spokespers­on said: “We are confident in the accuracy of our courier pay model and our records clearly show that our average courier rate is £9.80, 36 per cent above the minimum wage, after all legitimate expenses have been deducted.”

 ??  ?? Frank Field has heavily criticised the company after hearing employees’ claims of being paid less than minimum wage (PA)
Frank Field has heavily criticised the company after hearing employees’ claims of being paid less than minimum wage (PA)

Newspapers in English

Newspapers from United Kingdom