A recent employment tribunal has ruled that a hairdresser, described as self-employed under her contract, was in fact an employee. The case highlights the importance of the reality of working relationships over what a written contract states, particularly in industries where “self-employment” is common.
Meghan Gorman began her apprenticeship with Terence Paul (Manchester) Limited in 2013 and, upon qualifying as a hairdresser in October 2014, was asked to sign an “Independent Contract for Services”. This document described her as a “self-employed hair stylist” (SEHS) — a term the contract did not define.
When the Manchester salon closed in May 2019, Ms Gorman brought claims for unfair dismissal, sex discrimination, notice pay, holiday pay, and redundancy pay. Her former employers argued she had no entitlement to these claims because she was self-employed.
The case was heard at the Manchester Employment Tribunal on 11 March 2020, with the judgment issued on 16 July 2020. The tribunal concluded that Ms Gorman was, in fact, an employee and entitled to the rights and protections that status provides.
The tribunal’s reasoning
As with previous high-profile “gig economy” cases involving Uber, Deliveroo, and Pimlico Plumbers, the tribunal looked beyond the contract’s wording to assess the practical reality of the working relationship. It found that the salon exercised significant control over Ms Gorman’s day-to-day work and working conditions.
In its conclusion, the tribunal stated that the “independent contract for services” did not reflect the actual working arrangements. Ms Gorman’s hours, pricing, appearance, and client allocation were all dictated by the salon, which also retained ownership of the client list and imposed restrictions on time off.
Among the factors cited by the tribunal were:
- The salon determined Ms Gorman’s working hours and required notice for any time off.
- Prices for services were set by the salon, which deducted 67% of the income
- The salon decided which clients Ms Gorman served and controlled access to the client database.
- She was required to wear black clothing at work and to accept discounted rates when the salon ran promotions.
- When the salon closed, Ms Gorman was not provided with any client list or goodwill to continue working independently.
The tribunal concluded that Ms Gorman was not running her own business but working under the control of the salon, making her an employee in all but name.
A wider impact on the “gig economy”
This ruling adds to the growing body of case law challenging the use of “self-employment” in industries where workers are, in reality, under close management control. It serves as a warning to businesses that the tribunal will examine the substance of the relationship rather than the contractual labels used.
It remains to be seen whether this case will be appealed, but for now, it provides further clarity for workers and employers alike.
Why instruct Pomphreys
Employment status can have a major impact on rights to pay, holiday entitlement, and protection from unfair dismissal. Whether you’re an employer drafting contracts or a worker uncertain about your legal position, specialist advice can help you avoid costly disputes and ensure compliance with employment law.
At Pomphreys Solicitors, our experienced employment law team can advise on all aspects of employment relationships, from drafting contracts and staff policies to representing clients before tribunals.
Take the next step
If you need expert advice about employment status, contracts, or tribunal claims, contact Pomphreys Solicitors today. We’ll provide clear, practical guidance tailored to your situation and help you protect your rights or your business.
This article is by Sarah Lynch
Sarah Lynch, Managing Partner
Sarah Lynch is the Managing Partner at Pomphreys. Sarah studied at Dundee University, achieving a 2:1 LLB Honours degree in Scots Law. She then moved back to Glasgow to study the Diploma in Legal Practice, being one of only a small number of students to be offered a funded position for academic excellence achieved during the LLB. Sarah then secured a traineeship concentrating on Personal Injury before deciding to broaden her scope of work to all civil litigation. We recently caught up with Sarah to discuss her role in Pomphreys.
Tel: 01698 373 365
Email: sl@pomphreyslaw.com
