Bandi & Others V Bolt Operations Oü And Another [2024]

How does this judgement relate to the self-employed model?

A landmark judgement has been reached by the Employment Tribunal in favour of 15,000 Bolt drivers. They are now to be recognised as workers granting them rights to paid holidays, sick pay and parental pay and a minimum wage. Bolt claimed that their drivers were self-employed however, the tribunal determined that “There is nothing in the relationship which demands or even suggests, [drivers have] agency”. The judgement means that over 100,000 drivers who take on work through the Bolt app can seek worker status.

The law firm representing the drivers have stated that the compensation to the 15,000 drivers who are involved in the claim could be owed compensation reaching upwards of £200 million. As this matter has illustrated, misinterpreting employment status can be intensely expensive for employers.

In light of this judgement, employers should be wary before relying on self-employed agreements to constitute their relationship and should also focus on the day-to-day arrangements of how self-employed persons operate within their business. It is paramount that employers do not exercise control over self-employed persons parallel to that of the control over an employee. By making this mistake employers run the risk of claims in the Employment Tribunal from staff that they have initially engaged on a self-employed basis.

BANDI & OTHERS V BOLT OPERATIONS OÜ AND ANOTHER [2024] is not an isolated incident, a parallel claim on behalf of hundreds of Ola drivers is due to be heard by the London Central Employment Tribunal on 12 November. As well as this, in 2021 tens of thousands of Uber drivers were able to seek workers’ rights as a result of a Supreme Court judgement agreed with the Employment Tribunal’s decision that Uber drivers came under the definition of workers; for example, the level of control Uber has over its drivers, including setting fares, not informing drivers of the passenger’s destination until they have been picked up and using the ratings given to drivers by passengers as means of managing performance.

If you are unsure about employment statuses in general or have a specific query, do not hesitate to contact the Employment Team by emailing employment@buxtoncoates.com or calling our mainline on 0330 088 2275.