Looking beyond the label

By Lancashire Business View

07 Jun 2017

In association with

The gig economy has been described as a five million-strong ‘labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs’.

By Victoria Mitchell, associate partner and head of employment law and HR at Farleys Solicitors.

Individuals get paid for the ‘gigs’ they perform, such as parcel delivery, rather than a regular wage.

This is viewed by some as a working environment offering flexibility and by others as exploitation with very little workplace protection.

Recent cases including the Uber taxi drivers, City Sprint parcel couriers, Deliveroo takeaway couriers and, most recently, Pimlico Plumbers has highlighted the employment status of selfemployed individuals (or independent contractors) in the gig economy, and marked a movement away from this status to classification as ‘workers’.

The law governing employment status looks beyond the label applied, whether this is self-employed, a worker, or an employee, and focuses on the reality of the relationship.

Key components of an assessment and decision by an Employment Tribunal on employment status include mutuality of obligations, personal service and control – all of which must be present for an individual to be classed as an employee.

In Pimlico Plumbers & Charlie Mullins v Gary Smith, the Court of Appeal agreed with the original Employment Tribunal decision that found the self-employed plumber was actually a worker.

As a result of being given the status of workers, these self-employed individuals are now entitled to more rights than if they had been deemed self-employed. These include the national minimum wage, paid holiday, rest breaks, not to be treated detrimentally, and the ability to bring discrimination and whistleblowing claims.

Independent contractors are now starting to build up a number of workplace protections and the lines between the three categories of self-employed, worker, and employee are becoming increasingly blurred. Categorising someone as an independent contractor when in reality they are a worker could be very costly and result in significant tax liabilities and penalties – including criminal sanctions – for failing to comply with auto-enrolment obligations and Employment Tribunal claims.

Top tips for employers

Take account of a changing workforce and economy Review staffing structures Focus particular attention on those labelled as freelance and self-employed staff Take advice as to the status of staff and whether or not your business has any written terms governing these relationships and if so whether they afford appropriate protection.

Latest news

1

Red Rose Awards winners gather to celebrate Lancashire business Red Rose Awards Winners Reception

Red Rose Awards winners gather to celebrate Lancashire business

21 May 2026

2

Funding boost set to strengthen construction training pipeline isa O’Loughlin, principal and chief executive of East Lancashire Learning Group

Funding boost set to strengthen construction training pipeline

21 May 2026

3

Victorian Plumbing feeling flush after announcing record performance Victorian Plumbing staff

Victorian Plumbing feeling flush after announcing record performance

19 May 2026

4

GCAP ‘set for £6bn funding boost’ Tempest new

GCAP ‘set for £6bn funding boost’

19 May 2026

5

Anti-drone weapon tested in Lancashire is deployed on Middle East Operations BAE Systems tests

Anti-drone weapon tested in Lancashire is deployed on Middle East Operations

19 May 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Brysdales, Britannia Buildings Drumhead Road, Chorley, PR6 7BX

16:00 - 18:00

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2Q

08:30 - 10:30

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Research and Knowledge Exchange Festival 2026
Spark 2026 newsletter v3-5 (1).png.png
LBV Hub Seminars
18 May 2026 - 22 May 2026

Research and Knowledge Exchange Festival 2026

University of Lancashire, Preston, PR1 2HE

10:00 - 20:00

Building a high-performance culture
business workshop.png.png
LBV Hub Seminars
03 Jun 2026

Building a high-performance culture

Media Factory, University of Lancashire, Preston, PR1 2HE

09:30 - 11:30

Chamber Breakfast Networking – June
LBV Hub Networking
03 Jun 2026

Chamber Breakfast Networking – June

Pye Motors, Morecambe, LA3 3PE

08:00 - 10:00

Society1 Breakfast Social and Coworking Day
Breakfast Social June Facebook.png.png
LBV Hub Networking
04 Jun 2026

Society1 Breakfast Social and Coworking Day

Society1 Coworking Space, Preston, PR1 3LT

09:00 - 17:00

Yellow Day 2026
LBV Hub Fundraisers
07 Jun 2026

Yellow Day 2026

St Catherine's Hospice, Preston, pr55xu

11:00 - 16:00

Opening doors and opportunity for Tech in Preston
PTC Square June (900 x 900 px)-2.png.png
LBV Hub Networking
09 Jun 2026

Opening doors and opportunity for Tech in Preston

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Clubhouse Business Network sponsored by Orca Finance - June 2026
Padel Network.png.png
LBV Hub Networking
11 Jun 2026

Clubhouse Business Network sponsored by Orca Finance - June 2026

Clubhouse , Blackburn, BB1 3NT

14:00 - 16:00

The Business Network Central and East Lancashire
LBV Header (33).png.png
LBV Hub Networking
18 Jun 2026

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin