An employment appeal tribunal (EAT) has dismissed a challenge by British Car Auctions (BCA) over a dispute regarding rights for its drivers.
BCA is a vehicle remarketing organisation that sells used vehicles through auctions. It attempted to overturn a 2023 ruling, which confirmed drivers as workers, by arguing there were law errors in the ruling.
The claim was brought by law firm Leigh Day on behalf of around 1,000 current and former drivers. It centres on allegations that BCA misclassified its driver workforce as self-employed independent contractors and that they were denied holiday pay and national minimum wage.
The employment tribunal’s original judgment in May 2023 was in favour of the drivers, ruling that BCA exercised control over their work and written contracts did not reflect the working relationship. It concluded that the drivers were not operating as independent businesses and were part of BCA’s operations.
BCA attempted to appeal, arguing that the tribunal had improperly failed to take into account evidence they had advanced of substitution, as having a genuine substitution right would allow a contractor to delegate the work to a third party. It also argued that the tribunal unfairly criticised its failure to call any current or recent drivers as witnesses.
Both arguments were rejected, with the EAT upholding the finding the substitution clause in BCA’s contracts was not genuine in practice, as there was no evidence it had ever been exercised by any driver in over 25 years.
The EAT ruling means the BCA will need to provide compensation for holiday pay and for shortfalls in the minimum wage to affected claimants. Further hearings will be held to decide how much compensation they are entitled to.
Gabriel Morrison, senior associate solicitor at Leigh Day, said: “The employment appeal tribunal has now confirmed what the employment tribunal had already made crystal clear: BCA’s drivers are workers, and they are entitled to holiday pay and the national minimum wage. BCA’s attempt to undermine the tribunal’s findings was firmly rejected. This is an important result, not just for our clients but for anyone working in conditions where control and obligation are dressed up as self-employment. It’s time for BCA to stop resisting the inevitable and start treating their drivers fairly.”
BCA was contacted for comment prior to publication.
