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With the success of ride hailing app Uber comes a conundrum, – at what stage do workers’ rights come into action?

The American company operates in 13 UK cities, including Glasgow and Edinburgh and has won attention for revolutionising the taxi business worldwide.

However, it is now grabbing headlines for different reasons, following legal action by drivers claiming workers’ rights.

And it’s a problem other employers could face as they rely on flexible workforces made up of consultants, contractors and freelancers.

The GMB union brought the action on behalf of a group of Uber drivers, described as self-employed “partners” by the firm.

The action argues that as it pays the drivers and effectively controls charging rates and the route taken, it owes the same responsibility as any employer does to its workers, including the minimum wage, paid leave and making sure drivers take rest breaks.

If successful, Uber could be forced to compensate drivers for past payments, as well as future.

The problem highlighted is one UK companies need to consider as they seek efficiencies in staffing, warns Tayside solicitor and estate agent Miller Hendry.

Many organisations do not recognise that even where someone is not an employee, they may still be categorised as a “worker” and be entitled to certain rights.

The definition of this status in the Working Time Regulations 1998 is someone who works under a contract of employment, or any other express or implied contract, to provide work or services personally for a reward and who cannot send someone else to carry out the task.

There are some exceptions on subcontracting of work and also where services are provided by an individual through a limited company.

However, it means many casual, freelance or self-employed people may be treated as workers.

In one case that reached the Employment Appeal Tribunal, a selfemployed joiner doing jobs exclusively for a firm of building contractors was found to be a “worker”, despite providing his own hand tools and paying his own tax and national insurance.

Similarly, many think that calling someone an intern will confer a special status but it’s much more likely they too will be an employee.

Employment law expert Alan Matthew of Miller Hendry said: “When employers come up with different ways of contracting for services and staffing to make efficiencies, it’s not necessarily a bad thing for people who may themselves be seeking greater flexibility, for example. “However, both sides need to be clear. “What’s important is recognising that the way the company and an individual interact will determine the outcome on employment status, rather than simply the title that’s given to someone.

“It’s a complex area and even something that seems clear-cut may not prove to be so.

“If it reaches an employment tribunal, they will be looking at the intentions of both sides, as well as whether a person provides their own equipment, has some form of financial risk or is integrated into the business.”

To tackle the problem, the Government has launched an online tool to help check the employment status of an individual or group of workers to see if they are employed or self-employed.

Picture: Getty Images. A case being brought by the GMB union against ride hail firm Uber could have wideranging effects on rules about when firms have to pay for workers’ rights.