Financial & Legal News

Employment Law Case could affect Employers with self employed workers

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A ‘landmark’ employment case could this week pave the way for workers in the beauty industry to make similar claims after a self employed hairdresser has won the right to claim for notice, holiday and redundancy pay.

The claim, in the Employment Tribunal, could also have ramifications within other industries such as dentists, dental hygienists, book-keepers and delivery personnel and is a warning for employers to make sure their contracts with staff are right.

Tribunal decides Hairdresser was an Employee

The Tribunal found that the 26-year-old stylist, who worked at a Manchester city centre salon on a self employed basis was to all intents and purposes an employee.  She had an "Independent Contract for Services" but it was found that the salon had control over her day to day working practices, her hours of work and kept a large percentage of her takings.

An Employment Tribunal agreed that 26-year-old Meghan Gorman should be entitled to the benefits of an employee as she was not genuinely self employed and therefore should benefit from employment law rights.

The employment tribunal Judge ruled in her favour back in March but the reasons for the ruling have only just been released.

Other potential claims against the salon could include unfair and wrongful dismissal, sexual discrimination and a failure to provide a written employment contract, as well as claims for holiday pay.

Employment solicitor, Susan Mayall, said as always it’s the contract that has to be right in any employment issue:

“Having contractual documents which accurately reflect the employment status of a person who carries out work and services for your business can save you a lot of time, worry and expense,” said Susan, who is Head of Employment at Pearson Solicitors.  

“If you’re an employer and believe a person to be self employed but they turn out to be either a worker (who would be entitled to holiday pay) or as in the case reported here an employee with unfair dismissal rights after sufficient length of service, this could result in your business incurring unexpected costs,” she added.

Pearson Solicitors work regularly with businesses of all sizes, from smaller startups right through to larger national companies but the message is always the same - It’s always a good idea to get the correct employment advice right from the start.  Call 0161 785 3500 for a no obligation chat with our employment team or email susan.mayall@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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