Hermes likely to fight employment status ruling after tribunal's decision

20180309 - PHOTO by Darren Robinson Photography

Hermes is likely to appeal an employment tribunal's decision that 15 of its self-employed couriers should be classed as employees, on the grounds that it goes against evidence and previous decisions.

The carrier lost the case brought against it by union GMB, in which the tribunal ruled its couriers are entitled to the National Minimum Wage and holiday pay, among other rights that come with full employment.

The ruling applies to 15 couriers, with a further 50 cases yet to be heard by the tribunal.

Hermes responded to the ruling by saying it would "carefully review" the decision but that it was likely to contest it.

A statement from the business said: "We are likely to appeal it given that it goes against previous decisions, our understanding of the witness evidence and what we believe the law to be."

Hermes added that it was prepared for such an outcome and the impact it would have on the affected 15 couriers, and that it's "business as usual" at the carrier.

"We remain committed to providing couriers with the benefits of flexible working and the ability to earn well in excess of the national living wage," the statement concluded.

Frank Field MP, chairman of the Work and Pensions Committee, said the outcome of the case "ranks among the most substantial judicial interventions ever to support vulnerable workers in this country", and added that the decision was a "mega knockback to those companies still using old means of exploiting vulnerable worker".

Hermes increased its drivers' pay last month to meet growing competition for workers in the e-retail market. It raised the minimum hourly payment from £8.50 to £9.10. With expenses added, CEO Martijn de Lange told MT that couriers' minimum take-home pay is now £10.70 an hour.

De Lange told MT at the time: "Hermes is proud of the way in which its continual growth allows it to offer the opportunity to individuals to start their own business and work flexibly around their life commitments on a self-employed basis, and for those individuals to benefit directly from higher parcels volumes and earning potential when Hermes maintains or grows its share of an expanding market."

The parcel delivery sector is firmly in the cross-hairs of GMB's campaign to gain self-employed workers employee rights.

Earlier this year Amazon delivery partner UK Express settled out of court with four drivers represented by the union, with another case against two-person delivery outfit DX Group in April.