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Gig Economy Expert comments on Pimlico Plumbers ruling and why it won't have a big impact (probably)

The recent ruling in the Supreme Court, following the Pimlico Plumbers case, has set a precedent on whether someone is an employee or self-employed. This should never have been in doubt as both the Government's website and HMRC advice provides clear guidelines on determining employment status.

This information is based on the Employment Rights Act 1996.  It includes supervision, direction and control tests. While the Taylor Report "Good Work", published in July 2017 on modern working practices, provides insights into the changing nature of work, including the rise of the Gig Economy.

"Many SME companies classify their workers as "self-employed" or "sub-contractors" rather than as direct hire employees." comments Peter Lawrence, Founder of HR consultancy Human Capital Department.

"Recently our "human capital due diligence" process identified workers at a substantial building and construction company claiming to be self- employed and red flagged that only three people in the business were actually employees - one of whom was the Managing Director!"

Will the ruling have a significant impact? Probably not until the HMRC stop turning blind eye to it and start pursuing offenders.