In an industrial tribunal ruling last week, Meghan Gorman won her case to be entitled to notice, holiday and redundancy pay even though her employer, Terence Paul salon, considered her to be self employed and she had a contract stating that.
The tribunal heard that her Terence Paul controlled the hours and days she worked, she had no control over pricing or the ability to offer discounts to customers, she had to use the salons products and had to agree time off work with them.
This ruling will have a big impact on a wide range of sectors where people are considered to be self employed but are actually not, and will increase costs for employers and will, as employees, safeguard staff rights.
This could also impact on some rescue or insolvency processes as the ongoing liability to pay redundancy, holiday and notice pay could be passed on to the purchaser of a business where the employees where previously considered to be self employed.
Around 330,000 people are employed in the beauty industry in the UK, with 80% of those being women. Other sectors affected will include dentists, hygienists, taxi drivers and bookkeepers and will also add to the employee/self employed argument around IR35.
The Governments planned Self Employed Bill will hopefully provide structure to this area of when is someone self employed.
This case highlights the need to take professional advice from a reputable provider when creating contracts or considering options for your business.
Harrisons Business Rescue work with a range of leading providers in a range of industries to find solutions that work for you.
Contact us HERE for help.
