Courier service Hermes UK has reached a deal with the GMB union which means that all 20,000 self-employed ‘plus’ couriers will be auto-enrolled into a pension by the end of the year. The firm is also changing its name to Evri. 

 

The so-called ‘gig economy’ has been under intense scrutiny from politicians and regulators about its extensive use of what firms say are self-employed people but who are often in fact only working for a single employer.  

 

Increased calls for benefits that led to legal action has forced other gig firms to reconsider their approach to the workforce; last year, ride hailing service Uber had to set up a pension scheme for its drivers. 

   

   

As well as receiving pension contributions, Evri couriers will have the right to maternity and paternity leave from March 2022 as the firm hopes to encourage more parents to become couriers. The benefits represent a contribution by the employer of £7m a year. 

 

“Tens of thousands of couriers will now have the safety and security of knowing their retirement plans are being looked after,” said GMB Organiser Steve Garelick. “Meanwhile, the right to maternity and paternity leave will break down barriers previously blocking those with children from entering the profession.” 

 

Martijn de Lange, chief executive of Evri, said: “When we first announced our SE+ model in 2019 we committed to continuing to develop our support for our self-employed couriers and we are proud to have been true to that and be leading the industry once again.   

 

He said while couriers receive guaranteed pay rates, paid holidays and now a pension, they “have also been able to retain the flexibility that so many treasure, fitting in their deliveries alongside their other, often family, commitments”. 

 

A spokesperson from the Pensions Regulator said TPR welcomes the steps Evri is taking to give workers access to pensions saving.   

 

“We want to see eligible workers in the gig economy receive the pensions they are entitled to.The gig economy is set to grow further as the UK emerges from the pandemic and businesses recover, and it is only right that workers contributing to the economy have the opportunity to save for retirement,” the spokesperson said, adding: “Employers in the gig economy should recognise and comply with their automatic enrolment responsibilities voluntarily and promptly. We will take enforcement action where appropriate to ensure savers are protected.”