Dear Backers,

In Tuesday’s judgment, after 11 long years of seeking justice through the courts against Pimlico Plumbers mischaracterisation of his employment status, Gary Smith finally wins his holiday pay claim in the Court of Appeal.

Gary Smith’s epic battle for worker’s right saw him first succeed in the Supreme Court in 2018 when it upheld the employment tribunal’s judgment that he was a worker for Pimlico Plumbers and not an independent contractor running his own business. This ‘win’ meant that Gary Smith had the legal right to pursue a holiday claim against Pimlico Plumbers. However, nothing is straightforward in this case and Pimlico Plumbers continued to put up one almighty fight to try and deny Gary Smith’s holiday pay claim saying, ironically, it was brought too late. The Employment Tribunal and Employment Appeal Tribunal agreed with Pimlico Plumbers.

Enter the Court of Appeal and on 7 December 2021 after almost two days of legal argument, Gary Smith’s claim for holiday pay was vindicated.

As a result of Tuesday’s hugely important decision for gig economy workers, the Court of Appeal said that Smith could recover compensation for unpaid leave he took in the past. Michael Ford QC of Old Square Chambers who acted for Smith highlights this importance by stating that “workers could…carry over the untaken portion of four weeks’ leave and obtain full compensation for it on termination; now they can carry over taken leave as well”.

Adhering to EU law principles on the importance of taking paid leave, the Court of Appeal agreed with Smith that Pimlico Plumbers should have paid him for holidays when he took it. That failure to pay meant that Smith could carry over any unpaid leave and claim the payment on termination. Smith is now entitled to up to 24 weeks’ pay, equivalent to 4 weeks leave for every year worked. With unpaid leave going back to 2005, the interest on top will be significant.

This is great news, not just for Smith but for other workers who find themselves in the same position as him. No longer can employers hide behind contracts that deny employment status or deny the right to paid leave. There is now a significant financial risk that if the employer wrongly denies worker status, they will face holiday pay claims from their workers going back many years without a back stop. There is no defence to not paying holiday pay, so this judgment achieves employment protection, for the often-exploited worker, that the UK Working Time Regulations (as currently drafted) did not.

Gary Smith says: “I am very pleased with the outcome of the appeal. I would like to thank the legal team and everybody who was involved for their magnificent efforts…”

A big ‘shout out’ to the brilliant legal team of Michael Ford QC, Caspar Glyn QC, David Stephenson, and Jacqueline McGuigan for fearlessly protecting employment rights.