By the time you receive your Christmas present courier delivery you may find that the chap in the delivery lorry is similing more than usual. That may be because he has had a pay increase as a result of being classified as employed instead of self employed. The Uber and Hermes cases are posing problems for transport and delivery employers in what is commonly known as the "gig" economy - where businesses save resources by contracting with individuals for specific tasks who might otherwise be too expensive as employees. They are now having to assess whether their drivers are correctly classed as self employed for purposes of minimum wage. It is interesting to note that it is possible to be self employed for tax purposes but a worker for minimum wage. The terms of the contract are not conclusive as staff who are not in business for themselves can be consider legally employed even if they have signed a contract to the contrary. Legal decisions are due soon which may have big repercussions.
HMRC inquiry into claims of low pay at Hermes Delivery firm under investigation as government announces review of self-employment practices Delivery drivers are officially classed as self-employed, despite many claiming they are forced to be at their depot by set times, follow set timetables and are even threatened with losing work if they refuse to meet managers' demands. A number of drivers said low parcel rates meant they were effectively paid less than the minimum wage, while one driver said she was paid as little as £3 an hour for a rural delivery round.