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

Made Smarter Digital Internship programme helps Lancashire SMEs Sahil Hathi, Sana Fatima, Kian Tavakoli, Milanka Manathunga

Made Smarter Digital Internship programme helps Lancashire SMEs

09 Feb 2026

2

King’s royal seal of approval for cheesemaker’s new HQ Matthew Hall

King’s royal seal of approval for cheesemaker’s new HQ

09 Feb 2026

3

£55m improvement programme gains momentum in east Lancs Burnley

£55m improvement programme gains momentum in east Lancs

09 Feb 2026

4

Preston Marriott is on the market Marriot

Preston Marriott is on the market

09 Feb 2026

5

Solomon Commercials gets green light for £14m Kingsway expansion The headquarter view of Solomon Commercials

Solomon Commercials gets green light for £14m Kingsway expansion

06 Feb 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
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Degree apprenticeship information sessions for businesses
student centre entrance.jfif.jpg
LBV Hub Webinar
10 Feb 2026 - 13 Feb 2026

Degree apprenticeship information sessions for businesses

University of Lancashire, Virtual event, -

10:00 - 09:30

E-commerce in 2026: From stores to systems
PTC banner Feb 26.jpg.jpg
LBV Hub Networking
10 Feb 2026 - 10 Feb 2026

E-commerce in 2026: From stores to systems

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

The Business Network Central and East Lancashire
LBV Header (29).png.png
LBV Hub Networking
11 Feb 2026 - 11 Feb 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

The Ultimate Network – February
Logo.jpg.jpg
LBV Hub Networking
19 Feb 2026 - 19 Feb 2026

The Ultimate Network – February

Brockholes Nature Reserve, Samlesbury, PR5 0AG

16:00 - 18:00

Future Forward Business and Skills Summit
Future Forward Business & Skills Summit
LBV Hub Networking
20 Feb 2026

Future Forward Business and Skills Summit

Lancashire Energy HQ , Blackpool, FY4 2QS

08:00 - 11:00

Armed Forces Covenant Business Engagement
Logo.jpg.jpg
LBV Hub Seminars
24 Feb 2026 - 24 Feb 2026

Armed Forces Covenant Business Engagement

Morecambe Football Club, Morecambe, LA4 4TB

09:00 - 15:00

Preston Freelancer Meet-Up: February
LBV Hub Networking
26 Feb 2026 - 26 Feb 2026

Preston Freelancer Meet-Up: February

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Spring Forecast 2026 LIVE: Insights with PM+M
Spring Forecas.jpg.jpg
LBV Hub Seminars
03 Mar 2026 - 03 Mar 2026

Spring Forecast 2026 LIVE: Insights with PM+M

Blackburn Rovers Football Club (Red Rose Suite), Ewood Park, Blackburn , BB2 4JF

12:00 - 15:00

Chamber Breakfast Networking – March
Logo.jpg.jpg
LBV Hub Networking
03 Mar 2026 - 03 Mar 2026

Chamber Breakfast Networking – March

The Storey, Lancaster, LA1 1TH

08:00 - 10:00

Lancashire Lifesavers
Logo.jpg.jpg
LBV Hub Networking
03 Mar 2026 - 03 Mar 2026

Lancashire Lifesavers

The Story, Lancaster, LA1 1TH

10:15 - 11:15

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