Legislative reform following Supreme Court decision in Pimlico Plumbers?

The Supreme Court recently found in favour of Gary Smith, a self-employed plumber and heating engineer who worked for Pimlico Plumbers for six years. But in doing so, did it make new law?

The Supreme Court ruling in this case may have significant ramifications for self-employed workers, especially those in the gig economy, such as Deliveroo and Uber.

The Supreme Court ruled that despite being VAT-registered and paying tax as a self-employed individual, the claimant was entitled to employment rights, such as holiday and sick pay. The Court took into account certain factors in rejecting Pimlico Plumber’s argument that Smith was “self-employed” and not of “worker” status - and therefore exempt from the rights within employment law.

During his employment, Smith suffered a heart attack. His request to work 3 days a week was rejected and his van which was rented from the Pimlico was taken away at which point he was dismissed. Pimlico argued that Smith was self-employed as Smith was able to refuse work and carried the financial risk if clients did not pay. However, this argument was rejected by the Supreme Court and ruled that Smith was a worker and not self-employed.

The court accepted that Smith wore Pimlico’s uniform, drove Pimlico’s van with a tracker, and carried an identity card. Smith’s contract of employment also carried post-termination clauses which restricted his ability to compete after his employment was terminated.

The Supreme Court’s judgment is a very clear warning to employers in that they should examine their employment agreements carefully and review the nature of the relationship as it develops.

For more information please contact Hina Belitz on hina@partnerslaw.co.uk

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