Evri pays £8m in backdated pensions payments as profits slump
Delivery service Evri, formerly known as Hermes, paid more than £8m pounds in backdated pensions payments to thousands of its self-employed workers, following pressure from the pensions watchdog and GMB Union to enrol them into pension schemes.
The watchdog, alongside workers union GMB, has been encouraging gig economy companies – such as Evri – to enrol workers into pension schemes.
Evri agreed to do so last year when it also began offering maternity and paternity leave to its delivery drivers.
The company said: The new courier pension scheme commenced during the period and the company made a one-off payment of £8m representing the backdating costs to the new courier pension scheme established during the year.
“The pension regulator has confirmed the company’s compliance with the agreement.”
News of the payment came in conjunction with the firm’s full financial results for the year ending February, with the group revealing a slide in revenues and profits due to people ordering less clobber online post-pandemic.
Profit before tax fell to £51m down from £117m the prior year and revenues dipped slightly by 0.1 per cent year-on-year to £1.46bn.
Evri said that profitability was impacted by “inflationary pressures, volume volatility and disruption costs.”
Evri said: “We have demonstrated our flexibility and agility in adapting to market changes and external events, and remain committed to our core values and strategy pillars including cost leadership, investing in the fundamentals and maximising growth opportunities, particularly in new markets such as international and fulfilment.”