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An Important HR Update From C4HR
Are Your Drivers Self Employed?
 
 
 
 
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Do you provide drivers with ‘regular’ work but don’t employ them?

 

If you have answered yes to either of the above, then the recent tribunal case hearing regarding Uber Taxi drivers should be giving you cause for concern!

 
 
 
 
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The legal action alleged that Uber failed to ensure its drivers were paid the minimum wage or that they received the minimum amount of paid holiday.  The company has always maintained that their drivers were self-employed contractors rather than permanent employees, which means they are entitled to different benefits.  But the tribunal hearing ruled in favour of the drivers, stating they are in fact employees, rather than contractors.

The company now faces having to fund costly benefits for its drivers such as holiday pay, sick pay and pension contributions

The Legal Director of the GMB Trade Union stated, “This will have a hugely positive impact on over 30,000 drivers in London and across England and Wales, and for thousands more in other industries where bogus self-employment is rife.”

 
 
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What does this mean for your business?
 
 
 
 
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1) If your business relies on self-employed drivers, then you may have to review the terms by which you pay them, and ultimately employ them
 
 
 

 

 
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2) You may have to ensure that regular drivers receive monetary benefits such as sick pay & holiday pay – these will have to meet the minimum statutory levels
 
 
 
 
 
 
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3) You will need to consider ‘employing’ staff, and therefore ensure your contracts of employment are legal yet flexible to fit your business needs.
 
 
 

 

 
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4) Once you reach a company with a certain level of employees, you will have additional legal parameters you have to abide by in respect of employment law.  Failing to abide by these could result in penalties and fines for your business.
 
 
 
 
 
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C4HR Can Support You
 

If you would like the opportunity to discuss these issues further then get in touch to arrange an initial HR consultation with one of our experts.  The first 30 minutes are complimentary, and should enable you to understand how your business may be affected by the recent ruling, and what actions you could take to reduce your business risk.

 
Book A Consultation Today
 
 
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