UK – CitySprint loses third gig economy case as couriers win worker status

06 August 2020

The Independent Workers’ Union of Great Britain (IWGB) has claimed victory over courier CitySprint in an employment tribunal for a third time to establish worker status and basic employment rights for five of its members who work for the company.

The IWGB argued these couriers were misclassified as independent contractors and are consequently entitled to holiday pay.

The first case was in 2017 which saw IWGB, representing courier Maggie Dewhurst, win against CitySprint and establish that couriers should have worker status. A central London employment tribunal ruled that courier, CitySprint, had wrongly classified her as a self-employed worker.

The IWGB then launched a second case and, once again, claimed victory in 2019 by successfully proving that even on the altered contracts, the workers were entitled to TUPE protections. 

This week, the employment tribunal confirmed that couriers were workers both prior to and after the change of contracts and therefore have a rightful claim to holiday pay during both periods.

CitySprint’s financial liability will be established at a final hearing in October.

Jason Moyer-Lee, IWGB General Secretary, said, “CitySprint and other ‘gig economy’ companies are making a mockery of the British legal system. If the law were enforced and sanctions were real, CitySprint wouldn’t have dreamed of simply acting like it hadn’t already lost a tribunal claim over its couriers’ workers’ rights. In the absence of the state enforcing the law, the IWGB will continue to hold these cowboy companies to account.”

A spokesperson for CitySprint said, “We are naturally disappointed with this ruling, and will be reviewing this in detail before deciding whether to appeal. We strongly believe that this judgment, which relates to a small number of individuals and a period of time that occurred several years ago, does not reflect the positive relationship enjoyed by the vast majority of couriers.”

A separate £43,668.86 holiday pay claim is being made against Royal Mail-owned eCourier on behalf of three couriers that were TUPE transferred from CitySprint.