A freelance plumber has won a legal battle against Pimlico Plumbers after the court deemed he was entitled to basic workers’ rights
In a landmark legal case a freelance plumber has been told he is entitled to basic workers’ rights. The case, which was brought to the Court of Appeal, saw Gary Smith go head-to-head with London-based firm Pimlico Plumbers.
Despite being VAT registered and paying tax based on his status as self-employed, Smith had worked solely for Pimlico Plumbers for six years. After a heart attack in 2010, he wanted to reduce his working days from five to three. However, the firm refused to do this and took away his branded van, which he had hired. Smith said he was dismissed from the firm and brought legal proceedings.
He argued that while he was self-employed he was entitled to basic workers’ rights. This would include the national minimum wage, paid holidays, and the ability to bring discrimination claims.
A previous employment tribunal found plumbers were workers, but not employees. This means they are entitled to more rights than if they were self-employed and undertaking work on a totally freelance basis.
Dispute
Founder of Pimlico Plumbers Charlie Mullins contended plumbers were hired on a self-employed basis and provided their own materials. Furthermore they did not have workers’ benefits as they were paid more as a result. However, the appeal launched by Pimlico Plumbers was dismissed.
Mullins said after the ruling it was good the courts had offered clarity on the situation and said he had already changed contracts with those who worked on a self-employed basis, adding “Like our plumbing, now our contracts are watertight.”
He said he would likely take this case to the Supreme Court.
Resounding victory for workers’ rights
Smith’s solicitor Jacqueline McGuigan said the decision was a “resounding victory” for her client, who had been “tightly controlled” by the firm and unable to work for anyone else.
Furthermore, the case provided a clear insight into the different models of working.
however, the Court of Appeal judges on the case issued a caution, stating the ruling was not clear cut and may not be transferable to similar situations.
Lord Justice Underhill said: “Although employment lawyers will inevitably be interested in this case – the question of when a relationship is genuinely casual being a very live one at present – they should be careful about trying to draw any very general conclusions from it.”
Gig economy
The ruling will undoubtedly have a significant ripple effect on the construction industry, which utilises freelancers across most trades. Those working in the so-called “gig” economy, whereby employees work specific jobs and do not have the same rights as contracted workers, could challenge businesses.
Chief executive of the Royal Society for the Arts Mathew Taylor has been commissioned by the government alongside other experts to examine the issue of workers’ rights in the gig economy. This will include job security, pensions, holiday and parental leave rights.
