Employment status laws – are taxi drivers self employed? Johnson v GT Gettaxi (UK) Ltd
The Labour Government has previously promised to review and simplify the UK’s uniquely complex employment status laws in which we have different definitions of employment for tax and statutory employment protection purposes, and broadly three different types of employment status, specifically: employees; limb (b) workers; and the genuinely self- employed. Whilst the Employment Rights Bill makes detailed proposals for reform of “zero hours contracts” the published draft legislation does not address “employment status” or agency worker reforms.
Employment Appeal Tribunal Judgment – Mr C Johnson v GT Gettaxi (UK) Ltd: [2024] EAT 162
In the meantime the Employment Appeal Tribunal has considered another ‘gig economy’ platform based employment status case, involving a taxi driver using a ride hailing app to obtain customers. The same issues arose as in the Supreme Court’s 2021 judgment of Uber BV v Aslam but whereas in that case the court found that Mr Aslam was a worker and not self- employed, Mr Johnson was found to be self employed. His business was that of a black cab driver and he used Gettaxi’s app to increase his business – his client base. Furthermore, unlike Uber and Mr Aslam, Mr Johnson was not directly controlled over the way he operated through the app. The EAT’s judgment highlights that each case turns on its own facts and that in any case in which employment status has to be determined the contract between the parties must be considered in the light of the ‘factual matrix in which the contract is cast’.
Practical tip:
Employers and businesses engaging with sole traders, freelancers, agency worker temps must ensure that the contracts they use provide a proper basis upon which to demonstrate the status of the people with whom they engage.
