Having ‘worker’ employment status would give drivers 2 basis employment rights
Holiday Pay Right
A full-time worker would be entitled to receive 28 days paid leave every year (equivalent to 5.6 weeks) and be paid for it. Part time workers would receive holiday leave on a pro rata basis.
Holiday pay is normally calculated as 12.07% of annual income.
As an example, a driver with worker employment status working 50 hours per week and earning £12.00 per hour after expenses could be entitled to the sum of £3,744.00 per annum as ‘backdated’ compensation for unpaid holiday leave. The law regards this sum as an unlawful deduction from workers wages.
As a further example, a driver with worker employment status working 50 hours per week who earns £6.00 per hour after expenses (£2. 72 less than the current minimum wage) for holiday pay calculation purposes would be deemed to earn a minimum of £8.72 per hour. In these circumstances, the worker would be entitled to £2,720.64 per year as ‘backdated’ compensation for unpaid holiday leave.
Right not to receive less than minimum wage
This right does not mean a driver with worker employment status will receive the minimum wage.
The right is to receive not less than the minimum wage after expenses.
A driver with worker employment status working 50 hours per week and earning £1.50 less than the minimum wage after expenses could be reimbursed and claim ‘backdated’ compensation in the sum of £3,900.00 per year. In addition, he would be entitled to £2,720.64 for backdated unpaid holiday leave per annum.