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Pass the Parcel: Employment Court decision delivers warning for owner drivers

Written by Glenn Finnigan, PARTNER; Jeremy Ansell, SENIOR LAWYER on May 28th, 2020.    

Courier drivers have long been categorised by the Courts as contractors and not employees, largely due to industry practice. The Employment Court recently reconsidered how owner drivers in the courier sector were to be classified in the case of Leota v Parcel Express Limited. Mr Leota was a driver who provided courier services to Parcel Express Limited under an agreement which identified the arrangement as a contract for services. Although the Court said the decision related to the specific facts of Mr Leota’s relationship with Parcel Express Limited, the decision to declare him an employee may set precedent for other owner drivers, especially those operating under a similar model and contract to that used by Parcel Express.

Topics: Employment
 
 

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