Employment Status for Workers

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The employment status of workers is a grey area and can be a difficult legal issue for  employers.

Hermes, the courier company, have hit the news recently over an HMRC investigation into their pay rates for delivery drivers.

It is alleged that they pay drivers less than the national living wage and don’t pay them sick pay or holiday pay, treating them as self-employed rather than as employees. Hermes say they are “confident in the legality of our self-employed courier model” and that they will “cooperate fully with any investigation, should there be one”.

A number of other delivery and courier businesses have also featured in the media over similar allegations. There is much uncertainty within this area of the law and a number of test cases are awaiting judgment.

Many organisations use contractors, freelancers and other workers, without treating them as employees and this is often entirely appropriate, but it appears that HMRC will be intervening more and scrutinising some of these arrangements far more carefully.

Getting employment status wrong can be costly in terms of penalties, tax liabilities and employment tribunals …..

It’s not something that is going to go away.

How can Turnstone HR help?

There is a range of options open to the employer when it comes to offering someone work. We can discuss them with you, look at how things are done within your own organisation and recommend the correct or best fit employment status for your workers, keeping you legally compliant and free to run your business.

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