On the go: Campaign group Contractors for Justice is to take legal action against online estate agent Purplebricks in a move reminiscent of gig workers’ bid to win holiday pay and pension rights.
Pensions Expert reported in October that more than 100 estate agents were preparing to bring a group litigation order against Purplebricks. They claim that they effectively worked for the company but were classed as being self-employed.
The estate agency’s business model relies on self-employed “territory owners”, who oversee several “local property experts”. However, agents have told the Financial Times that the working culture is more akin to being direct employees.
In August, Purplebricks announced that it would move its agents to fully employed status, directly employing those members of staff and entitling them to pension contributions, paid leave and sick pay.
In a statement, Purplebricks said: “All territory operators entered into a commercial licence agreement and this was clearly set out in their contract with Purplebricks.
“We have always taken legal advice in regards to our licensing model — and the advice is very clear that these individuals were operating as limited companies, running their own business and with full control over their own staff.”
C4J’s claim is for as much as 20.7 per cent of each person’s total earnings from the companies it is set to pursue, and it is inviting more claimants to join the action on a no-win no-fee basis.
Should Purplebricks be found to have treated its self-employed agents as if they were employed by the company, for instance by controlling their schedules or limiting their ability to work for other employers, the total claim could be worth more than £20m.
C4J spokesperson Peter Fletcher said: “From the day that we announced that we were supporting formerly self-employed estate agents in a claim to recompense their holiday pay and statutory pension contributions, my team have been inundated with interest from hundreds upon hundreds of Purplebricks agents in particular.
“Our case is clear. Companies that masquerade their staff as self-employed in order to save themselves huge sums in employment costs will end up simply funnelling that cash back to the individuals that have lost out by being part of such schemes.
“We are now full to the brim with potential claimants and will be shutting the door on this first cohort of petitioners on December 14. It’s possible that there will be a second cohort at some point in the future but far from certain that this will be possible or needed,” he said.
