Uber Loses UK Supreme Court Fight Must Classify Drivers as Workers
Taxi giant Uber must classify its drivers as workers with minimum wage, vacation, and sick pay rights, rather than being classified as self-employed, the UK Supreme Court ruled on Friday.
The decision follows a long-running legal dispute that the American company had brought to Britain’s highest court.
A group of drivers had launched the claim to challenge that they should be classified as workers, rather than independent third-party contractors, meaning they are entitled to all the basic employment protections under UK law.
A key point in the Supreme Court ruling is that Uber must consider its drivers as “workers” from the moment they log into the app until they log out.
“Our clients have been fighting for workers’ rights for many years, so we are delighted that the end is finally in sight,” said Nigel Mackay, a partner in the employment team at the Leigh Day law firm, who represented some of the Uber drivers. involved in the case.
“Already a labor court, the Labor Appeal Court and the Court of Appeal have ruled that Uber drivers are entitled to workers’ rights, and now the Supreme Court has reached the same conclusion,” he said.
The ruling could mean significant compensation claims for drivers, as it said the company would seek compensation.
Following Friday’s ruling, the labor court will now have to decide how much compensation to award the 25 drivers in the initial case dating back to 2016.
While the decision will only apply to those 25 drivers, it sets a precedent for how these workers are treated in the UK’s so-called ‘gig economy’.
“I am very happy and very relieved by this decision that will bring relief to so many workers in the gig economy who so desperately need it,” said Yaseen Aslam, lead co-plaintiff and president of App Drivers & Couriers Union.
“This ruling will fundamentally reorder the gig economy and end the widespread exploitation of workers through algorithmic and contractual deception,” added James Farrar, co-lead plaintiff and general secretary of the union.
“Uber drivers are cruelly sold a false dream of infinite flexibility and entrepreneurial freedom. The reality has been illegally low pay, dangerously long hours, and intense digital surveillance, ”he said.
In response to the ruling, Uber’s regional general manager for Northern and Eastern Europe, Jamie Heywood, said the company respects the court’s decision, emphasizing that it “targeted a small number of drivers who used the Uber app in 2016 “.
“Since then, we have made some significant changes to our business, guided by drivers every step of the way. These include giving even more control over how they earn and providing new protections like free insurance in the event of illness or injury, ”said Heywood.
“We are committed to doing more and will now consult with all active drivers in the UK to understand the changes they want to see,” he said.
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