“Uber-style” gig economy legal case launched against Amazon logistics firm

GMB union today launched legal action against national logistics company UK Express, on behalf of workers at Amazon. It’s the latest case in a long line of legal battles around what the union describes as “bogus self-employment”.

UK Express drivers should fall into the same category as Uber drivers, says the GMB, in that although they currently have ‘self-employed’ status, they should in fact be classed as workers, and therefore be entitled to employment rights such as holiday pay, sick pay and the minimum wage.

Maria Ludkin, GMB legal director says: “Employers might not like paying the Minimum Wage or giving their workers the protections they’re entitled to in the workplace, but I’m afraid it’s not optional. UK Express deliver for some of the world’s largest companies, in this case Amazon.

“The drivers delivering for Amazon – like Uber drivers and delivery drivers for DX – cannot be classed as anything other than employed when you look at the law. We don’t get to pick and choose which laws we adhere to. This is a much wider issue than individual companies like UK Express or Uber. This is about employment in 21st century Britain.”

It’s the latest high-profile case against gig economy exploitation and firms, which the unions and lawyers claim use self-employed loopholes to avoid paying the minimum wage.

GMB has taken the legal cases on behalf of members who deliver for Amazon, contending that the drivers should be classed as workers, meaning they would be legally entitled to 5.6 weeks paid annual leave per year, the National Minimum Wage at £7.20 per hour for over 25s, increasing to £7.50 from April 2017, paid rest breaks and whistle-blower protection.

GMB claims that Amazon drivers are workers, and potentially employees, on the grounds that: Amazon imposes control on drivers relating to routes, sanctions them for ‘poor performance’ and requires them to pay for a van hired from the company.

It says that Amazon Logistics requires the drivers to be available for 15 days per month, that drivers have money deducted from their pay if they cannot work and that drivers are prohibited from working for a competitor.

Nigel Mackay, a lawyer in the employment team at Leigh Day, says: “We believe UK Express drivers are workers who are being denied their rights, including paid holiday and the National Minimum Wage, due to being mislabelled by UK Express as self-employed. Drivers are also being fined if they can’t work, even when they have good reason. We believe this is unlawful.”

In October 2016, an employment tribunal ruled that Uber drivers are workers entitled to basic workers’ rights and that the company are wrong to label them as self- employed. Other successful cases about worker status, represented by unions and high-profile law firms, include those by couriers with CitySprint and Excel. In a current case, a group of Deliveroo couriers is going through the first stages of a process, where they plan to argue that they are in fact employees. Separately, the Independent Workers Union of Great Britain (IWGB) is fighting for the right of union recognition at Deliveroo in Camden and Kentish Town, London.

While the case is against UK Express, the union and lawyers dealing with it point out that UK Express is paid by Amazon to deliver its parcels. The GMB says the multi-national company is “already costing us enough by refusing to pay taxes” and it won’t stand by and allow this status quo to continue.

Mackay adds: “We believe Amazon should require its contractors to provide workers with their legal entitlements, including paid holiday and National Minimum Wage, and to stop fining staff if they are unable to work.”

Employment Solicitor

EMPLOYMENT SOLICITOR.COM

Call us 0808 196 9145 or request a call back to arrange a call with with a recommended expert employment solicitor.

Happy to chat now? Use our website chat widget (bottom right corner of your screen).

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.