Domino’s Pizza drivers were employees, not contractors, Supreme Court rules

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Domino’s Pizza drivers were employees, not contractors, Supreme Court rules
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Thirteen-year saga over tax status of delivery staff has important implications for workers in the gig economy

Delivery drivers for a pizza restaurant should be treated as employees and not contractors, the Supreme Court has found in a decision that has important implications for workers in the gig economy.

Karshan appealed a 2018 decision of a Tax Appeals Commissioner that the delivery drivers should be treated as PAYE workers. The High Court rejected that appeal, but the Court of Appeal, in a 2-1 majority, overturned that decision.HealthBeacon races to keep lights on as medtech burns through cash Karshan’s “theory of mutuality of obligation” was that mutual commitments had to present some type of continuity and to have a forward-looking element. It also argued there had to be an obligation on the part of the employer to provide work and there had to be an obligation on the part of the employee to perform work.He said the question of whether a contract is one “of” or “for” services should, having regard to well-established case law, be resolved by reference to five questions.

Regard must also be had to whether the arrangements point to the putative employee working for themselves or for the putative employer. While there were some features of their activities that were consistent with their being independent contractors engaged in business on their own account, the Commissioner was entitled to conclude that the preponderance of the evidence pointed to the drivers carrying on Karshan’s business rather than their own, he found.

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