If you’re someone who is considering a career as a delivery driver, you may be wondering about the different types of employment available in this field. One company that has been making waves in the delivery industry is Hermes, a UK-based courier company that delivers parcels on behalf of other businesses. One question that often comes up about Hermes is whether their drivers are considered self-employed or not.
What is Self-Employment
Before we dive into whether or not Hermes drivers are self-employed, it’s important to understand what self-employment means. According to the UK government, self-employment refers to individuals who work for themselves rather than for an employer. This means that they are responsible for managing their own business affairs and paying their own taxes.
The Hermes Model
The Hermes model operates by using a network of self-employed drivers to carry out deliveries on behalf of clients. In practice, this means that drivers have the freedom to choose when and where they work, as well as how much they charge for their services. They are also responsible for managing their own expenses such as fuel and vehicle maintenance.
While this may sound like self-employment on the surface, there have been legal challenges to this model in recent years. In 2018, a group of Hermes drivers took the company to court arguing that they were being misclassified as self-employed when they should have been classified as workers or employees.
Worker vs Employee vs Self-Employed
So what’s the difference between a worker, an employee, and someone who is self-employed The main difference lies in how much control an individual has over their work and how they are paid.
A worker typically has less control over their work than a self-employed person but more control than an employee. Workers are entitled to basic employment rights such as the national minimum wage, holiday pay, and sick pay. Employees have even more rights, including protection against unfair dismissal and redundancy pay.
As for self-employed individuals, they have the most control over their work but are not entitled to employment rights. This means that they are responsible for paying their own taxes and don’t receive any benefits such as sick pay or holiday pay.
The Legal Challenge
In the case of Hermes, the drivers argued that they should be classified as workers rather than self-employed. They claimed that Hermes had control over their work in terms of setting delivery rates and allocating deliveries, which meant that they should be entitled to basic employment rights.
The court agreed with the drivers and ruled that they were indeed workers rather than self-employed. This meant that they were entitled to basic employment rights such as the national minimum wage and holiday pay.
What Does This Mean For Hermes Drivers
As a result of the legal challenge, Hermes has agreed to offer its drivers a new contract which gives them worker status rather than self-employed status. This means that they will be entitled to basic employment rights such as holiday pay and sick pay.
While some drivers may see this as a positive development, others may feel that it takes away from the flexibility that attracted them to working for Hermes in the first place. It’s important for anyone considering working for Hermes or any other delivery company to carefully consider their employment status before signing any contracts.
The Bottom Line
In conclusion, while Hermes drivers were previously considered self-employed, a legal challenge has resulted in them being classified as workers. It’s important for anyone considering working for Hermes or any other delivery company to understand the different types of employment status and their associated rights before signing any contracts.