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

Preston firm starts work on major Merseyside warehouse development Huyton 220 1

Preston firm starts work on major Merseyside warehouse development

25 Sep 2026

2

Pothole repair machine seals hattrick of award wins for Multevo Hugh Dennis Presents Multevo With Product Of The Year Award

Pothole repair machine seals hattrick of award wins for Multevo

25 Sep 2026

3

The north needs its older homes in the plan Zak Khan

The north needs its older homes in the plan

25 Sep 2026

4

Sowena signs up to sponsor Red Rose Awards Deal of the Year RRA Sowena Group

Sowena signs up to sponsor Red Rose Awards Deal of the Year

25 Sep 2026

5

Cyber specialist wins £295,000 of Innovate UK funding    Richard Stephenson Yudu Sentinel

Cyber specialist wins £295,000 of Innovate UK funding   

25 Sep 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
All In One Network
LBV Website Events GraphicAll In One Network 15 Oct 2026

All In One Network

The Leisure Box, Northlight, Glen Way, Brierfield , BB9 5NH

14:00 - 16:00

Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

18:30 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

90 Day Business Planning Workshop
90 Day Business Planning Workshop 25 Sep 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

Employment law webinar - an update on key ERA 2025 changes
LBV Website Events GraphicEmployment Law Webinar 29 Sep 2026

Employment law webinar - an update on key ERA 2025 changes

Online, Preston, PR1 3JD

12:00 - 13:00

Preston Tech Connection Coworking Day at Society1
Preston Tech 2 29 Sep 2026

Preston Tech Connection Coworking Day at Society1

Society1, Coworking Space, Preston, PR1 3LT

09:00 - 17:00

Business on Par Burnley
Business on Par LBV Banner (1200 x 800 px).png.png 30 Sep 2026

Business on Par Burnley

Prairie Sports Village, Burnley, BB10 2FU

09:00 - 11:00

Unfair Dismissal: The critical update employers can’t afford to miss
Lancaster And Morecambe Logo 1 30 Sep 2026

Unfair Dismissal: The critical update employers can’t afford to miss

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

SheChain Live - Where Lancashire business meets opportunity
SheChain Live (3).png.png 01 Oct 2026 - 01 Oct 2026

SheChain Live - Where Lancashire business meets opportunity

Blackpool Conference Centre, Winter Gardens (Leopold Grove entrance), Blackpool, FY1 1HL

09:30 - 16:15

Breakfast Social and Coworking Day: October
Breakfast Social 01 Oct 2026

Breakfast Social and Coworking Day: October

Society1, 9-10 Cross Street, Preston, PR1 3LT

10:00 - 12:00

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 LBV129 Online Graphic
Subscribe now

Weekly news bulletin