June 2018 - United Kingdom - HERMES PARCELNET LTD / Leyland and others

1800575/2017, 1800594-1800599/2017, 1801037-1801039/2017, 1801166-1801169/2017, 1801320/2017

Ruling on June 22, 2018

Authority: Leeds Employment Tribunal

Parties: Leyland and others / Hermes Parcelnet Ltd

Subject: Right to the minimum wage, paid leave and reimbursement of wage deductions of Hermes Parcelnet couriers. 

Summary of facts: Hermes Parcelnet is a parcel delivery company. A number of couriers are claiming entitlement to the national minimum wage, paid leave and reimbursement of unauthorised wage deductions on the ground that they were wrongly classified as self-employed. The agreement between Hermes and the couriers includes that couriers are not obliged to provide the service personally and have the "unconditional" right to appoint a replacement to provide the service on their behalf, at any time and for any reason. This can be done by 1) a person who is already a courier at Hermes or 2) a replacement who is not yet a courier at Hermes.

Legal question: Can Leyland's couriers be qualified as employees or self-employed?

Considerations: The Employment Tribunal concludes that the written conditions do not reflect the factual situation. The way in which the parties operate in practice indicates that there are contracts that fall within the scope of dependent working relationships. For example, drivers were obliged to provide services and the obligation to provide them personally and Hermes is not a customer of any of their business ventures.

Ruling: The couriers are to be considered as employees, and are thus entitled to the national minimum wage, paid leave and reimbursement of any unauthorised wage deductions.