Gary Smith, who had worked for London-based Pimlico Plumbers under a self-employed contract, took his case to the Supreme Court in a dispute over his entitlement to rights such as sick pay.
He claims that after suffering a heart attack in 2011 and attempting to reduce his hours, he was unfairly dismissed by the company, which was upheld by an employment tribunal.
Pimlico Plumbers appealed against this decision by arguing Mr Smith signed a contract as a self-employed contractor. However, the company lost its appeal and five Supreme Court judges have now unanimously agreed with that decision
-- Advertisement --
Charlie Mullins, Chief Executive Officer and founder of Pimlico Plumbers, said the decision will lead to a "tsunami of claims" from contractors.
"This was a poor decision that will potentially leave thousands of companies, employing millions of contractors, wondering if one day soon they will get nasty surprise from a former contractor demanding more money, despite having been paid in full years ago," he said.
"I'm supposed to say I'm disappointed with the outcome of the appeal. In reality I am disgusted by the approach taken to this case by the highest court in the United Kingdom.
"The five judges had the opportunity to drag our outdated employment law into the 21st Century, but instead they bottled the decision, and as a result thousands of companies across the UK, who use contractors in an honest and responsible way, remain exposed to huge potential claims in the future."
(LM/MH)
