ARE YOU AT RISK?
Let’s cut to the chase. As a private hire operator, you might be closer to an employment tribunal than you think. Ask yourself honestly, have you ever uttered these words to a driver:
YOU WILL... YOU WON’T... YOU MUST... THIS IS HOW YOU...
If you’re nodding your head to any of these, alarm bells should be ringing. You’re walking a tightrope, and the safety net of saying “all drivers are self-employed” might be about to disappear.
But it’s not just about what you say. It’s about what you do. Consider these scenarios:
l Are you penalising drivers for not accepting a certain percentage of jobs?
l Do you dictate specific routes drivers must take?
l Are you preventing drivers from working for other operators or using other apps?
l Do you require drivers to wear a uniform or display your branding?
Each “yes” is another nail in the coffin of self- employment status. Remember, true self-employment means genuine independence. If you’re controlling when, where and how drivers work, you’re acting like an employer - whether you realise it or not.
What’s Really at Stake for YOU? Let’s talk brass tacks. If you’re found to
be
misclassifying drivers, here’s what YOU could be on the hook for:
l Holiday Pay: Up to 5.6 weeks per driver per year. Imagine that multiplied across your entire fleet.
l Sick Pay: Every time a driver calls in sick, coming out of YOUR pocket.
it’s
l National Minimum Wage: Even during those quiet periods, you’ll be topping up driver earnings.
l Pension Contributions: Add this to your growing list of new expenses.
And let’s not forget the back pay. Tribunals can award this going back years. Can YOUR business absorb that kind of financial hit?
28
Let’s put some numbers to this. For a fleet of 50 drivers earning an average of £500 per week:
l Annual Holiday Pay: Approximately £140,000
l Potential Sick Pay (if 10% of drivers are off for four weeks): £19,870
l Pension Contributions (3% of qualifying earnings): Around £39,000 per year
Now, multiply that by two or three years of back pay. We’re talking about a potential liability in the millions.
Can your business weather that storm? The Tsunami of Change is Here!
Wake up and smell the coffee. 12,500 self-employed drivers engaging with Bolt just launched a class action to be reclassified as employees. Employment tribunals related to gig economy worker status are skyrocketing. It's not a question of if you’ll face a challenge, but when.
Consider these statistics:
l Gig economy-related employment tribunal cases have increased by 38% in the last year alone.
l The success rate for claimants in these cases is soaring.
l The average cost to defend an employment tribunal case is £8,500, even if you win.
And it’s not just about the financial cost. Think about the operational nightmare:
l Reworking your entire business model overnight l Implementing new payroll systems and processes l Managing increased administrative burdens
l Dealing with the ripple effects on your pricing and competitiveness
OCTOBER 2024 PHTM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76
