Delivery firm Hermes face HMRC investigation for ‘paying drivers below minimum wage’

TAX INSPECTORS have been asked to consider investigating allegations of low-pay made by self-employed couriers working for delivery company Hermes, it has been revealed.

Business minister Margot James has reportedly asked HMRC to consider launching a "proactive investigation" into the company, which has faced allegations of unfair working practises by self-employed drivers.

Hermes uses 10,500 self-employed drivers who it pays per parcel to deliver packages for high street retailers including John Lewis and Next.

Self-employed drivers are not legally entitled to the National Living Wage, which applies to employees.

It is understood the investigation would examine if Hermes is right to classify its drivers as self-employed.

In recent months the delivery company has come under fire amid allegations of poor working practises.

The Sun has reported on claims the parents of a dying child were threatened with losing their Hermes rounds if they did not return to work - despite being at their six-year-old son's hospital bedside.

In July couriers for the company told some were earning levels of pay equivalent to £7.20 per hour.

The Guardian has reported that Labour MP will Frank Field will send a dossier containing claims from Hermes' self-employed drivers to Prime Minister Theresa May.

The Guardian revealed that in a letter to Mr Field the business minister said she could not comment specifically on Hermes but added “employers cannot opt out of their employment law obligations by defining individuals as self-employed. An individual’s employment status is established based on the reality of the working relationship.”

Mr Field has said some of the firm's employees seemed to "be enforcing an employee contract under the cover of self-employment".

Hermes said it is confident its agreements with couriers qualify as legitimate self-employment, something it says was confirmed by HMRC in 2011.

The company has also said it will cooperate fully with any investigation.

Hermes has said it cannot comment on Mr Field's report without more detail, but added that the 78 complaints it allegedly contains would represent less than 1per cent of its workforce.

It also said that more than a third of couriers have worked with Hermes for at least five years and that it is “committed to ensuring that everyone at Hermes operates in a supportive and compassionate manner. If we find that these standards have not been met we will take the appropriate action.”

In her first speech as Prime Minister Theresa May spoke to people who "have a job" but not always "job security".

She said: "The government I lead will be driven, not by the interests of the privileged few, but by yours."

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