In today's workplace, more and more people are forced to make a living through working in the so-called ‘gig economy’, undertaking short-term assignments rather than normal employment.

In the UK, it is estimated that five million people are employed in this type of capacity.

In the last six months, self-employed Uber drivers, Deliveroo cyclists and City-sprint despatch riders have all come under the spotlight fighting for basic employment rights, in particular relating to holiday pay and pay equivalent to at least the national minimum wage. Last week it was the turn of the Pimlico plumber.

Many companies operating in the gig economy have structured their business model in a way to restrict their liability towards those who work for, or provide services for them.

In the recent case of Pimlico Plumbers and Mullins v Smith, Mr Smith was a plumber who carried out work solely for the company between 2005 and 2011.

The company argued that Smith was an independent contractor rather than a worker or employee.

The Court of Appeal found that Mr Smith was not an employee, nor truly self-employed, but a ‘worker’, a hybrid term defined in law who has a right to holiday pay and a minimum rate of pay.

The tribunals are sending a clear message to businesses that where there is a degree of control exercised by the business – in this case it related to the requirement to undertake a minimum number of hours each week – it is inconsistent with a business being a client of the individual.

In short, Watford businesses who engage persons on a self-employed business model would best be advised to review their working practices to ensure they are not exposed to claims.