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Case law update: Employment status

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For employment law purposes an individual can be engaged as an employee, worker or self-employed. Each status places different obligations on the hirer.

This complex area of law, which has considerable grey areas, has been considered in cases over the last few years involving well-known companies such as Uber and Hermes.

In the case of Johnson v GT Gettaxi the Employment Appeal tribunal recently held that, a taxi driver, who utilised a black cab app between 2015 and 2017 in order to attract more business, was not a worker of the respondent. The app (Gettaxi) allowed individuals to request black cabs via the app, rather than having to hail them in the street, or going to one of the designated taxi ranks.

The status of the claimant was a preliminary issue which the Employment Appeal Tribunal was required to decipher as part of the claimant’s claim for whistleblowing.

There were some similarities to the Supreme Court case of Uber v Aslam where it was determined that the Uber drivers did constitute workers. Contrastingly, the drivers in this case were deemed to be conducting their own business and simply relying on the app to grow their business reach. The EAT noted in particular:

  • The driver was not penalised by GT Gettaxi if they refused a ride and therefore suggested that the individual was working for their own business.
  • The driver did not need to exclusively use the GT Gettaxi app, they were able to use other apps and gain business in the traditional black cab way.
  • The driver did not receive many details about the passenger and was able to make plans with any passengers for other trips (i.e. without having to use the app).
  • Differing to the Uber case, the taxi driver was able to choose their own routes and were not required to follow the GPS route.

Organisations of all sizes, from a village hall engaging a cleaner to Amazon engaging delivery drivers, should be aware of the engagement status of the individuals it relies on.

If you have any queries in relation to employment status, please do not hesitate to contact our employment team.

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.
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