Pimlico Plumbers & another v Smith
The Supreme Court has upheld the finding that an individual was a “worker” despite the contract describing him as an independent self-employed contractor. It confirms that a contract which does not reflect the reality of the relationship will not be relied upon by the Tribunals and the courts. We covered this case in our previous article and the judgment can be accessed here.
The consequences of getting the reality of the employment relationship wrong can be significant. An organisation may have to pay out compensation for unfair dismissal, discrimination and holiday pay claims. In certain cases, the holiday pay claims could result in awards of almost twenty years’ worth of unpaid holidays. Organisations may wish to ensure that their contracts truly reflect the reality to help manage these risks.