The first in a long line of 2017 ‘status’ decisions has been released. The London Employment Tribunal have found that a medical cycle courier working for CitySprint was actually a worker and not a self-employed ‘contractor’ in Dewhurst v CitySprint UK Ltd.
In similar fashion to Uber, CitySprint operate on a pay per job model for around 3,200 bicycle and van couriers. Their documentation ensured couriers were defined as “self-employed Contractors” and contained common self-employed clauses including there was no mutuality of obligation and couriers had the right to substitute themselves.
The turning point of the decision was where the judge looked at the reality of the courier being in ‘business on their own account’. They found that the courier was dependent on CitySprint economically and organisationally whereas a person operating a business would never be in this position. The tribunal also found that there were a number of other indicators of ‘worker’ status including:
- The control CitySprint exercised over the couriers such as directing them whilst on jobs, instructing them to smile at customers, paying them using the company’s pay formula and issuing uniforms to wear;
- Cycle couriers couldn’t substitute another courier in reality and, even if they could, the ability to do so was so small because of the limitations outlined in the contractual documents; and
- Couriers couldn’t actually carry out work for other companies whilst carrying out jobs for CitySprint.
The documentation was described as “contorted” due to the inequality of bargaining positions of the parties and Dewhurst was found to be working when she was “on circuit”; essentially, when she turned on her tracking device to when she told the control room she had finished for the night.
The claim against CitySprint is the first status claim to be heard by the same employment tribunal. Similar courier firms facing claims include Addison Lee and eCourier and these will be heard in the next few months. Status and the ‘gig economy’ is likely to be the ongoing issue of 2017.
