False Self Employment

In response to a report produced by Frank Field MP, Margot James, the Business Minister, has asked HMRC to investigate the working arrangements within the courier firm Hermes.

HMRC has passed complaints and allegations to its compliance teams from 98 couriers working for Hermes, which delivers parcels for John Lewis and Next. This follows a Guardian’s investigation in July that found several were earning below the minimum wage and felt they were effectively employees.

Hermes is challenging the report produced by Mr Field saying that it “does not reflect" the way it operates, but it would co-operate with HMRC.

The allegations are that Hermes managers tell workers:

• when they’re going to work
• for how long

Additionally, they are released by the firm if they look for flexibility in the working arrangements

There has been a lot published in the media – The Guardian, The Independent, The Mirror and the BBC. It will be very interesting to see the outcome of HMRC’s investigations.