A trade union in the UK is bringing a High Court challenge over the employment status of drivers working there for delivery firm Deliveroo.
In the latest case involving workers’ rights in the gig economy, the Independent Workers Union of Great Britain (IWGB) wants the court to overturn a ruling which confirmed the “self-employed” status of Deliveroo riders.
Deliveroo claimed a victory following the ruling by the Central Arbitration Committee (CAC) in November last year. The CAC, which considers union recognition and collective bargain cases, rejected an application by the IWGB to represent drivers in parts of north London
The committee concluded that because riders are able to pass on a job to a substitute, or to abandon a job, they could not be classified as “workers”. The union says that, as independent contractors, the riders are “denied basic employment rights” including a guaranteed minimum wage, holiday pay and collective bargaining rights.
Speaking after the CAC ruling, Deliveroo’s managing director for the UK and Ireland Dan Warne said: “This is a victory for all riders who have continuously told us that flexibility is what they value most about working with Deliveroo.
“We welcome the decision of the committee. As we have consistently argued, our riders value the flexibility that self-employment provides.” Mr Warne said at the time that the firm wants a change in employment law so it could offer benefits such as sick pay to its riders, whilst maintaining that flexibility.
A number of cases concerning the status of those working in the gig economy have reached the courts in recent months.
Taxi firm Uber lost an appeal in November against an employment tribunal ruling on the status of employees, after two drivers argued they were “workers” and entitled to the minimum wage, sick pay and paid leave.
Uber announced it will appeal, saying almost all taxi and private hire drivers have been self-employed for decades, long before its app existed.
The Supreme Court is due to deliver a judgment on Wednesday in a landmark case brought by firm Pimlico Plumbers, which it is said could have “huge ramifications” for employment law.
The firm appealed against a number of court rulings which determined plumber Gary Smith could claim “worker” status – even though he was described as “self-employed operator” in his contract.
The IWGB will seek permission to bring a judicial review against the CAC at a hearing in London on Tuesday.
The union’s general secretary Dr Jason Moyer-Lee said: “Out of all the recent high-profile workers’ rights cases in the so-called ‘gig economy’, Deliveroo is the only company which has successfully deployed legal shenanigans to deny its workers their rights.
“But a business model based on overzealous lawyers and legal loopholes is not sustainable.
“The IWGB will continue to take action until it successfully secures basic employment rights for Deliveroo riders.”
Crowdfunding for the legal costs of the case has reached £23,000 so far.