Hermes delivery service have agreed a deal with GMB trade union to provide their couriers with an option to opt in to enhanced legal rights. This is the first example of such an agreement in the UK.
Hermes “Self-Employed Plus” Rights
Previously, Hermes’ couriers were seen as being self-employed and their pay was dependent on the number of deliveries they made and how many miles they covered during a shift.
However, the new deal, agreed with the GMB, will provide Hermes’ 15,000 couriers with the chance to opt-in to contracts which offer them improved rights and so-called “self-employed plus” status. These improved rights include:
- Holiday pay – pro-rata up to 28 days per year;
- Negotiated pay rates to earn at least £8.55 per hour during the course of the year (this is 9% higher than the national living wage); and
- Full union representation from the GMB.
As part of opting into the “self-employed plus” system, Hermes’ couriers would have to follow daily delivery routes/schedules specified by Hermes. This isn’t currently the case and the couriers can make deliveries in any order that they choose.
Hermes’ couriers who wish to retain their self-employed status and not opt-in to the new self-employed plus terms on offer, are able to do so.
Following the announcement of the new terms, Hermes UK Chief Executive, Martijn de Lange, commented:
“This new option allows couriers to retain the flexibility of self-employment we know is so important to them and gives them the certainty of guaranteed levels of earning, the security of holiday pay and a strong voice.
“We’re proud to be leading the way with this pioneering development which we hope will encourage other companies to reflect on the employment models they use. We have listened to our couriers and are wholeheartedly committed to offering innovative ways of working to meet peoples’ differing needs.”
2018 Employment Tribunal – Leyland v Hermes Parcelnet Ltd
Hermes’ decision to offer their couriers improved employment terms has come after the Employment Tribunal case last Summer, where is was held that Hermes’ drivers were ‘workers’ and therefore entitled to basic employment rights, such as holiday pay and the minimum wage.
Comment
During the last couple of years, there have been several reported cases, which have considered the rights of those employed in the gig economy, where the boundaries between employed and self-employed status can be blurred.
Employers, such as Hermes, therefore, are coming under pressure to review these relationships and provide much needed clarity for all involved.
We would advise all organisations with self-employed staff or a casual work force to review their terms and employment status now.
How Can Nelsons Help?
Laura Kearsley is a specialist Employment Law Partner at Nelsons.
For more information on the subjects discussed above, please contact Laura or another member of our Employment Law team on 0800 024 1976 or via our online form.