In this VVA podcast from Van Veen Lawyers, Tjeerd van Veen and Aart Jan Stokkers discuss the Supreme Court’s Deliveroo ruling.
According to the highest court, the company’s bicycle couriers were employees rather than self-employed workers after all. So when is it an employment contract and when is it a contract for services? When assessing this question, “all the circumstances of the case” must be considered. The Supreme Court uses a so-called holistic approach to assess whether something is an employment contract or not.
But yes … weigh all circumstances? The average employer does not sit at their desk with a scale in front of them.
Why is this ruling relevant to companies working with self-employed workers?
Initially, the parties who entered into an assignment agreement may be satisfied with the arrangements made. Eventually, however, other interests may come into play. For example, someone becomes ill and, as a self-employed person, there is no sick pay. With hindsight, the self-employed person could then still argue that there was an employment contract. The risk to the employer can come from a variety of angles. Consider also third parties, such as the union, the tax authorities or the dependents of the self-employed worker.
Now what?
So should companies working with freelancers stop doing this? Are the risks contractually sealable?
Aart Jan Stokkers and Tjeerd van Veen tell what struck them about the judgment. Furthermore, they give some examples of situations from practice. Finally, they look ahead.
