Worker status and rights are rarely out of the press at the moment. The recent EU holiday pay case of King v Sash Window Workshop adds another dimension and could have massive implications if you hire individuals on a self-employed basis as consultants or contractors.
If the contractor later brings and wins an employment tribunal case which says that they are a ‘worker’, rather than being genuinely self-employed, they will get all of the rights that go along with being a worker. While these rights are not as extensive as employment rights, they do include the right to 5.6 weeks’ paid holiday a year.
Mr King was a self-employed salesman who brought a claim for worker status and was successful. He had never asked to take holidays or been paid for them. However, the Court of Justice of the European Union has held that holiday pay accrued during the whole period that he worked for Sash Window Workshop. He was entitled to be paid for 13 years of holiday back-pay.
There are some questions which still need to be answered by the Court of Appeal, but this case may open up some businesses to the risk of large holiday pay claims from people they thought were self-employed – and going back much further than the two years we previously thought. This case also increases the stakes in the gig economy worker cases going through the courts at the moment.