Don Lane worked as a self-employed courier for the DPD parcel delivery company. He was 53, lived in Dorset, and suffered from kidney damage caused by diabetes.
Last year, he collapsed at the wheel of his van while making deliveries, and died in January.
His widow, Ruth, said Don had missed numerous hospital appointments because of work pressures. The company used to charge self-employed drivers £150 for every day they missed work, and Don had previously been fined for taking time off for a hospital appointment.
Following his death, the company has announced wholesale reform to their working model.
Of their 6,000 couriers, 5,000 were self-employed, which confers no employment rights.
From July, all DPD workers will have the right to choose their employment status every year:
- Directly employed – staff will be paid less per parcel to offset the costs of employment, but benefit from all the employment rights
- Worker – similar to an employee but with fewer rights
- Self-employed franchisee – couriers will earn more per parcel, and benefit from the freedom of flexible working while being entitled to paid holiday, sick pay, and access to a pension scheme
The company has also announced that they will scrap the £150 daily penalty charge, and replace it with a points-based system.
To develop the reforms, CEO Dwain MacDonald, visited depots and talked to drivers. The company also took external advice from David Watts, former chair of the parliamentary Labour party, and Iain Wright, former chair of the House of Commons business, energy and industrial select committee.
Dwain said: ” We need to improve the way we work with our drivers. [Our] self-employed franchise scheme hasn’t moved with the times and needs updating. Our plan is to completely transform our overall offer as well as the day-to-day working relationship we have with our drivers.”
What this means to you
An estimated 1.1 million people in the UK are working in the so-called ‘gig economy’, and DPD is the first such employer to propose such fundamental reforms.
Are you a self-employed worker in the gig economy? Maybe your employer will be inspired to update your employment status too.
For further information, give us a call.
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