Gig economy couriers win minimum wage and holiday pay with Hermes

Self-employed couriers at Hermes will be given a minimum hourly wage and holiday pay in a deal the company calls a world first.

Employees who opt in to the scheme will be guaranteed to earn at least £8.55 per hour and get up to 28 days paid holiday a year.

Hermes said it had reached the deal with union GMB after feedback from couriers.

“This new option allows couriers to retain the flexibility of self-employment we know is so important to them and gives them the certainty of guaranteed levels of earning, the security of holiday pay and a strong voice,” said Hermes UK chief executive Martijn de Lange.

“We’re proud to be leading the way with this pioneering development which we hope will encourage other companies to reflect on the employment models they use.”

However, couriers preferring to keep the freedoms of full self employment can stay on the old system, Hermes said. The company told City A.M. that no employee will be worse off by switching to the deal.

GMB general secretary Tim Roache called on other employers to follow in Hermes footsteps.

He said: “As a result of our groundbreaking agreement, couriers will have a real voice in their workplace as well as the right to holiday pay and guaranteed pay, something GMB Union has long been campaigning for on behalf of our members.

“Full credit to Hermes. They’re showing that the gig economy doesn’t have to be an exploitative economy and we look forward to working with them through this groundbreaking agreement.”