James v Redcats (Brands) Ltd | |
---|---|
Court | Employment Appeal Tribunal |
Decided | 21 February 2007 |
Citations | [2007] UKEAT 0475_06_2102, [2007] ICR 1006, [2007] IRLR 296 |
Case opinions | |
Elias J | |
Keywords | |
Minimum wage, worker |
James v Redcats (Brands) Ltd [2007] IRLR 296 is a legal case in the United Kingdom on the definition of a worker under the National Minimum Wage Act 1998. The Employment Appeal Tribunal held that lack of "mutuality of obligation" does not affect the status of being an employee, and therefore coverage under the 1998 Act.
Ms James worked for Redcats (Brands) Ltd, a postal company, [1] as a courier. She was making a claim that she was not being paid a minimum wage, and as a preliminary point, it needed to be determined whether she was a "worker" under s 54(3) of the 1998 Act. Redcats argued that she was "self-employed" and therefore not protected by the legislation.
Ms James used her own car to deliver parcels. Redcats set delivery deadlines and gave detailed instructions on how to carry out her duties. The first tribunal held there was only a contract for services (i.e. self-employed) not of service (i.e. not a 'worker') because there was no so called "mutuality of obligation". Redcats did not promise her any particular amount of work, said the tribunal and she could always decline it. At the Employment Appeal Tribunal Ms James argued this was simply untrue and there was an obligation to accept work.
Elias J found in favour of Ms James. She was indeed a worker, and even if there was a lack of mutuality of obligation, this did not matter to the status of a person when work was being done. Even if a person is doing small contractual stints, and there was no overarching contract, there could still be an employment relationship (following McMeechan v Secretary of State for Employment [1997] ICR 549).
The case was remitted to the tribunal, on this guidance, to determine the case afresh.
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £11.44 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995. Workers must be able to vote for trustees of their occupational pensions under the Pensions Act 2004. In some enterprises, such as universities or NHS foundation trusts, staff can vote for the directors of the organisation. In enterprises with over 50 staff, workers must be negotiated with, with a view to agreement on any contract or workplace organisation changes, major economic developments or difficulties. The UK Corporate Governance Code recommends worker involvement in voting for a listed company's board of directors but does not yet follow international standards in protecting the right to vote in law. Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work. Collective agreements are ultimately backed up by a trade union's right to strike: a fundamental requirement of democratic society in international law. Under the Trade Union and Labour Relations (Consolidation) Act 1992 strike action is protected when it is "in contemplation or furtherance of a trade dispute".
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