HMRC to investigate bogus self employment at Hermes

20 October 2016

Delivery company Hermes will be investigated by HMRC after drivers reported being misclassified as self employed to chairman of the House of Commons Work and Pensions Select Committee and Labour MP Frank Fields.

Compliance officers have been asked to look into the company to decide if drivers should be classed as workers. Falsely classifying workers as self employed is one way that businesses attempt to evade basic employment rights such as paying minimum wage and providing sick pay and annual leave.

The investigation could have wider implications for the so-called “gig” economy, with workers at Uber and Deliveroo also speaking out about being misclassified as self employed.

In its Manifesto for Labour Law – 25 policy proposals now adopted by the Labour Party – the Institute of Employment Rights recommended that the legal definition of ‘worker’ should be reviewed to ensure it encompasses workers who are currently misclassified as self employed, thereby ensuring that all workers are protected by statutory employment rights.