Pimlico Plumbers Lose Again, This Time in The Supreme Court

The Liberal Democrats have welcomed today's ruling by the Supreme Court categorizing Pimlico Plumbers' employees as workers rather than self-employed, meaning they are entitled to basic employment rights such as holiday pay. The ruling is likely to have a knock-on impact on ongoing legal battles against other prominent businesses in the gig economy such as Uber and Addison Lee.

Speaking following the ruling, Liberal Democrat Work and Pensions spokesperson, Stephen Lloyd MP, said:

“The Supreme Court has made it clear: if a company has its grip over how you work, how you are paid and who you can work for, you are not self-employed. But workers in need of protection should not have to be dragged to the highest court in the land in order to get it.

“We need a new settlement for the gig economy, building on the Taylor Report. The Government should create a new employment status of ‘dependent contractor’ and a higher minimum wage for hours not guaranteed in their contract, forcing unscrupulous companies to think again about their employment structures.

“Universal Credit and pensions products also need overhauling so that the safety net works for the gig economy too.”

ABC Comment: The background to the case was, that Gary Smith, a tradesman, who had been working for Pimlico Plumbers for over five years. While his contract described him as self-employed, Smith argued he should be classed as a worker because he wore the Pimlico Plumbers uniform, drove a branded company van and took orders from the control room. This, he argued, meant he should be entitled to holiday pay, protection against disability discrimination and unfair wage cuts. Lord Wilson of the Supreme Court said Smith should be classed as a worker because his contract with Pimlico enabled the company to “exercise tight administrative control” over him and “impose fierce conditions on when and how much it paid to him”. He was a 'dependant worker' in other words. The case represents the first occasion that the Supreme Court has ruled on the gig economy and will no doubt set a precedent. A similar case involving two Uber drivers will be heard later this year.

Pimlico Plumber's chief executive Charlie Mullins predictably said he was “disgusted” with the decision. “It can only lead to a tsunami of claims” against the thousands of firms that employ millions of contractors, he said.

ABC Note: Pimlico Plumbers predictably lost their case in the Supreme Court, no one was particularly suprised. . 

ABC Comment: Are you self-employed or a worker?