A UK plumbing and heating engineer has won a legal battle against Pimlico Plumbers over his working rights. In a unanimous decision, the Supreme court ruled that the plumbing engineer was a worker and not self-employed.

The Supreme Court’s judgement is likely to impact other gig economy disputes including those involving taxi firms, Uber and Addison Lee.

Gary Smith, the plumbing and heating engineer, worked for Pimlico Plumbers between August 2005 and April 2011. Following a heart attack, he wanted to reduce his working days at Pimlico Plumbers, however the company refused and took away his company van. Smith then argued he was entitled to basic rights as a worker, including the right to the national minimum wage and paid holiday, and the right to bring a claim for discrimination.  Pimlico argued that Smith was an independent contractor.

A tribunal ruled in favour of Smith in 2017 saying that he was entitled to worker’s rights. However, Pimlico appealed the ruling which led to the Supreme Court hearing.

In the Supreme Court’s Press Summary, it stated that the tribunal was entitled to conclude that Smith qualified as a ‘worker’ under the Employment Rights Act 1996.

“When considering whether Mr Smith had undertaken to provide a personal service, it was relevant that when working for Pimlico Mr Smith had a limited facility (not found in his written contracts) to appoint another Pimlico operative to do a job he had previously quoted for but no longer wished to undertake,” the Supreme Court stated.

“On the issue of whether Pimlico Plumbers was a client or customer of Mr Smith, the tribunal had legitimately found that there was an umbrella contract between the parties, i.e. one which cast obligations on Mr Smith even when he was between assignments for Pimlico,” The Supreme Court stated.

Julia Kermode, Chief executive of the Freelancer & Contractor Services Association, commented, “This is a landmark result that is important for workers everywhere and should send a resounding signal to those firms that engage self-employed people to check their contractual arrangements and working practices.”

“Employment status is complex, and this case illustrates the need to retain three tiers of employment status as Gary Smith was neither employed nor self-employed,” Kermode said. “He was required to work at least 40 hours per week, was required to wear a Pimlico Plumbers uniform and drive a branded van. He also had to ask permission to take time off.  He was clearly a worker, and not self-employed, despite the intention of Pimlico Plumbers.”

Kermode added that the case is ‘set to change the employment landscape forever.’

Dave Chaplin, CEO and founder of ContractorCalculator also commented, “Pimlico plumbers hired "self-employed" people and put them in branded vehicles, branded clothing, and has expected them to adhere to policies and processes for their company. They should be entitled to their rights, regardless of how much they earned. Hopefully we will see a wave of other firms complying with their statutory obligations as a result of today’s decision.”