This new arrangement comes in response to the Employment Tribunal decisions in 2018 against Hermes where the tribunal found that 65 of its couriers were not self-employed, as argued by Hermes, but workers. This employment status gave the couriers the right to receive national minimum wage and annual leave.
The new collective bargaining agreement will allow couriers to opt-in to an arrangement whereby they also become members of the GMB union (those who do no to join can remain self-employed). Hermes will have a degree of control over the 'Self-employed plus' couriers, who will not be entitled to sick pay and will need to follow routes set out by Hermes, rather than being able to choose the order in which to make deliveries as they presently do.
An interesting development in the current gig economy climate and an arrangement to watch with the tax implications probably a priority for HMRC.
It’s our mission to advise and develop the employment law capability of HR professionals wherever we can, helping HR teams make a real commercial difference to their organisations. That way, you spend less time solving operational issues and more time actioning projects that drive far-reaching change in your company.
Call 0333 006 2929 or email firstname.lastname@example.org today to discover exactly how we can help you.