File photo dated 03/09/07 of a Pimlico Plumbers sign. The UK's highest court is to deliver its ruling in the case involving the plumbers, which is said will have 'huge ramifications' for the gig economy. PRESS ASSOCIATION Photo. Issue date: Wednesday June 13, 2018. Gary Smith, a plumber who worked for Pimlico Plumbers for nearly six years from 2005, has already won a number of court rulings that determined he could claim "worker" status even though he was described in his contract as a "self-employed operative". See PA story COURTS Plumber. Photo credit should read: Clara Molden/PA Wire
An appeal was rejected by five Supreme Court justices (Picture: PA)

The UK’s highest court has dealt a blow to the so-called gig economy in a landmark ruling over the employment status of a plumber.

Gary Smith, who worked for Pimlico Plumbers for nearly six years from 2005, previously won a number of court rulings that determined he could claim ‘worker’ status, even though he was described in his contract as a ‘self-employed operative’.

Those were upheld unanimously by five Supreme Court justices, who rejected an appeal by Pimlico Plumbers.

Announcing the decision in London on Wednesday, Lord Wilson said an employment tribunal was ‘entitled to conclude’ the firm could not be regarded as having been a ‘client or customer’ of Mr Smith.

The judge said: ‘Although the contract did provide him with elements of operational and financial independence, Mr Smith’s services to the company’s customers were marketed through the company.

Pimlico Plumbers chief executive Charlie Mullins outside the Supreme Court, London, where an employment law case on whether plumber Gary Smith was a worker or a contractor will be considered.
Pimlico Plumbers chief executive Charlie Mullins outside the Supreme Court, London, where the case was heard (Picture: PA)

‘More importantly, its terms enabled the company to exercise tight administrative control over him during his periods of work it; to impose fierce conditions on when and how much

it paid to him, which were described at one point as his wages; and to restrict his ability to compete with it for plumbing work following any termination of their relationship.’

The ruling is likely to have a major impact on the sort of flexible working arrangements which have been on the rise in recent years and could affect a number of other cases currently progressing through the courts.

Mr Smith, a plumbing and heating engineer, was one of 125 contractors Pimlico Plumbers could call on to carry out jobs for its customers and had a company uniform and van which he rented.

He claimed that, after suffering a heart attack in 2011 and trying to reduce his hours, he was unfairly dismissed and the tribunal made a preliminary finding that he was a ‘worker’

within the meaning of the 1996 Employment Rights Act.

That decision was upheld by the Employment Appeal Tribunal and again by the Court of Appeal in January last year.

The Court of Appeal found Mr Smith was a worker because he was required to use the firm’s van for assignments and was contractually obliged to do a minimum number of hours a week.

As a ‘worker’, he is entitled to employment rights including holiday and sick pay.

Mr Smith will now be able to go ahead with his employment tribunal claim for unfair dismissal against Pimlico Plumbers as a ‘worker’.