eXp, a hybrid style estate agency has said it has signed up 270 agents and expects to break the 300 mark later this year.
It launched in 2019 and has benefitted from a rising demand in agents wishing to work from home and be considered self-employed members of staff, managing their own time and areas.
It would, however, be wise to avoid the same mistake as Purplebricks Group PLC (AIM:PURP), who are currently facing a class action lawsuit from over 100 former agents who believe they were entitled to the benefits given to permanent employees, despite being classed as self-employed.
Shares in the online estate agent have plummeted 96% to 19p since its all-time high in 2017 of just under 500p, with this lawsuit, brought in November, contributing to that.
Contractors for Justice, who are bringing the class action lawsuit, believe the total could be worth anywhere between £20mln and £100mln.
If last year’s Uber case is anything to go by, a precedent has been set and the outcome looks bleak for Purplebricks.
To make matters worse, at the end of January, the AIM-listed reported a £20.2mln loss in the six months to October 2021 after having to increase costs following making several sales staff permanent employees.
Shares in Purplebricks were down 1% at 19.3p in lunchtime trading.