Royal Mail is being sued for classifying delivery drivers as self-employed, enabling it to avoid paying holiday pay and the minimum wage, in a case that mirrors a landmark gig economy legal ruling against Uber.
The Royal Mail drivers allege that the practice means Parcelforce – the company’s parcel delivery subsidiary – can also make them pay hundreds of pounds in fines when they call in sick.
Marc Francis, one of the claimants in the case, which is being handled by the Independent Workers’ Union of Great Britain (IWGB) and the solicitor Leigh Day, said that after 10 years of working for Parcelforce he has “had enough”.
The drivers argue that Parcelforce and its parent Royal Mail wrongly classify a large number of its delivery drivers such as Francis as self-employed owner drivers.
Despite being classed as self-employed, owner drivers do not have control over the days they work (which are outlined in contracts with Parcelforce), the hours they work (as it is dependent on the number of packages given to them by Parcelforce each morning) or even the route they take (determined by the company’s Route Excellence computer system).
As self-employed staff, they are not given the same protections as workers, such as holiday pay, sick pay or the minimum wage, and are charged fees when they call in sick.
In September, a flare-up of his ulcerative colitis meant Francis could not work for two weeks. When he came back from sickness, he was asked to pay £764 to Parcelforce to cover the cost of the agency worker who covered his route.
Another of the claimants with a more extensive delivery route was allegedly forced to pay nearly £1,500 to cover his route when he could not work for two weeks.
Francis claimed the practice leaves owner drivers unable to take time off and scared of attending GP appointments given the amount it could cost them.
In one email to his depot managers he shared with the Observer, he informed them he had just been told by doctors that he had developed pneumonia but reassured his bosses that he “will be in, in the morning” for work.
On another occasion, when the planned cover did not turn up for a shift he had to miss, Francis received a letter from Parcelforce threatening to terminate his contract.
Another part of the complaint surrounds pay. Owner drivers agree individual parcel rates with Parcelforce in their contracts. In Francis’s case, his base rate actually reduced a few years into his time as an owner driver, and despite small increases since, he said he regularly fails to make the minimum wage after deducting his costs.
On one day in late January, he made just £58 for a day’s work after paying for fuel and his van lease.
Owner drivers do not get paid for parcels that are not delivered successfully, despite drivers spending time and fuel to attempt the delivery, and can see their pay confiscated if they fail to deliver within strict one-hour time windows determined by Parcelforce’s computer system.
“The reason why owner drivers are much more suitable to the business is purely down to exploitation,” Francis said. “You can talk to me about money all you want but this case is not about that. All I want is legal rights – rights that we’re due,” he added.
The case resembles a seminal legal battle against Uber that went all the way to the supreme court in 2021 in which Uber drivers won the right to be classed as workers rather than self-employed contractors.
Francis and the two other claimants in his case – Phil Thomas and Stephen Wardell – first lodged their complaint with the IWGB union but the case has now been taken on by solicitor Leigh Day.
The legal firm said that it believed the problems faced by the trio were endemic across Parcelforce and that it hoped to launch a wider group claim in future.
“In our view, Parcelforce drivers working for Royal Mail should be entitled to workers’ rights such as receiving holiday pay and being paid the national minimum wage. This issue affects thousands of Parcelforce owner drivers,” said Liana Wood, a senior associate solicitor at Leigh Day.
“Often, these drivers have worked for Royal Mail for many years and seen their working conditions steadily decline. Yet, as they are classified as self-employed contractors, they are denied their basic workers’ rights.”
A Parcelforce spokesperson said: “All of our owner drivers are self-employed and we refute any claims that this is not the case.
“Our self-employed drivers play a valuable role in delivering parcels in the UK and are free to provide their services to other businesses.
“Our owner drivers can choose whether to personally make deliveries and collections or arrange for other drivers to do them. We are unable to comment on an ongoing legal claim.”
• This article was amended on 7 March 2024. An earlier version suggested the legal action to have Parcelforce drivers reclassified as workers rather than self-employed would bring benefits including sick pay; this should have said “holiday pay”. It is only individuals classed as employees and certain types of worker who qualify for sick pay.
