The Chartered Institute of Payroll Professionals
News On Line
Following the recent success of claims against companies such as Uber, Addison Lee and Amazon, C4J are aiming to gather over 2,500 property agents for their claim. C4J are looking for workers who meet any of the three below criterias: • Working under the supervision, direction or control of another person • Being provided with equipment, such as a laptop • Being required to pre-book holidays Peter Fletcher, a consultant for C4J, estimates the claim to be worth between £20 million to £100 million, with each agent potentially being owed thousands of pounds each. Fletcher stated “HMRC and the courts are clear that just designating your staff as self -employed does not mean that you may operate those workers as employees in all but name just to save the company from paying holiday pay, statutory pension contributions and so on. In recent cases involving Amazon and Uber it’s been found that self - employed contractors were in fact workers in the eyes of the law”. According to a Purplebricks spokesperson, it was ‘clear’ that the individuals were “running their own business” and were self-employed. Adding “All territory operators entered into a commercial licence agreement, and this was clearly set out in their contract with Purplebricks. We have always taken legal advice in regards to our licensing model – and the advice is very clear that these individuals were operating as limited companies, running their own business and with full control over their own staff.” As the gig economy grows, and employment status case law continues to set new precedence, claims such as this will continue to be brought forward. As judgements are made, and the law clarifies where a worker is seen to be employed, companies must adapt to remain compliant.
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The Supreme Court clarifies collective bargaining rights while siding with workers
1 November2021
In a ruling on 27 October 2021 (Kostal UK v Dunkley) the Supreme Court determined that Kostal UK unlawfully approached workers while undergoing collective bargaining with the union.
Kostal UK made an offer of pay increases and Christmas bonuses on the condition of changes to overtime, sick pay and breaks within the contracts. After this was voted against by the employees through collective bargaining with Unite (the union), Kostal UK approached the employees directly with another offer with a deadline. A further offer was extended after the deadline to those who had not accepted the first. While these offers took place the union was still undergoing the collective bargaining process. While the workers were awarded compensation by the Supreme Court, the judgement recognised the need for agreements to be in place regarding collective bargaining. An employer may make an offer to an employee if they reasonably believe the collective bargaining process has been exhausted. After the process has ended, the employer may make the adjustments required without negotiation with the union.
It is advisable that, should an employer have such an agreement in place, it clearly defines steps the process will take. Ensuring unambiguity will mean that it will be clear when the process has ended.
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Real living wage increased to £9.90 per hour
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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