Plumber wins legal battle against Pimlico Plumbers in workers’ rights case

The highly-reported Pimlico Plumbers case has drawn to a close as worker Gary Smith wins against them in the long-running legal battle. The ruling is expected to have huge consequences within the gig economy.

The case, which disputes workers’ rights after the engineer claims he was unlawfully dismissed, has brought about much-needed discussion over the divide between employees, workers and the self-employed and what rights each is entitled to. 

Mr Smith worked for the company between 2005 and 2011. After suffering a heart attack in 2011, he wanted to reduce his working hours. Pimlico refused this request, took away the branded van Mr Smith hired from the company, and was later dismissed. 

The ruling states that despite Mr Smith was entitled to workers’ rights. This was despite being registered as self-employed, paying self-employed tax and being VAT registered. The employment tribunal concluded that Mr Smith was a worker due to restrictions Pimlico Plumbers placed on him, meaning he was thus entitled to rights that he would not have if he was self-employed, including proceeding with a claim that he was unfairly dismissed.

What the officials are saying

Chief Executive of Pimlico Plumbers Charlie Mullins said, “This was a poor decision that will potentially leave thousands of companies, employing millions of contractors, wondering if one day soon they will get a nasty surprise from a former contractor demanding more money, despite having been paid in full years ago. It can only lead to a tsunami of claims.” 

TUC General Secretary Frances O’Grady said that the case shows just how quickly “sham self-employment” has spread. She wants the government to “crack down on bogus self-employment” to ensure workers benefit from the rights they deserve, unless they are genuinely self-employed and treated as such. 

Tim Goodwin of law firm Winckworth Sherwood said, “Even with a high level decision like this, to a degree the issue of employment status in the gig economy is up in the air. 

“The government is consulting on this issue and may bring forward legislation. It’s quite possible that Parliament may overrule this decision within the next few months or years.”