Uber: UK Supreme Court declares drivers to be ‘workers’, not independent contractors

by



[ad_1]

The court said on Friday that an employment tribunal was correct in finding that Uber’s drivers were workers, dismissing an appeal from the company. The decision was unanimous. Uber drivers are workers, the court said, as the company sets fares and has significant control over drivers who use the app.

While the practical effects of the decision are not yet clear, the decision could change the way Uber (UBER) does business in the UK. The company may be required to provide additional benefits to drivers, including paid vacation and a minimum wage. The next step is for an employment tribunal to decide how to compensate dozens of claimants.
The case may also set a precedent for other workers and businesses in the broader odd-job economy, which flourished during the pandemic due to a surge in demand for food and other deliveries. services.

The Uber complaint was first filed in a UK employment tribunal by Yaseen Aslam and James Farrar in 2016, while the two were driving for Uber. Aslam worked for another company, but said he was drawn to Uber with lucrative pay and bonuses.

But Aslam said the benefits were quickly drying up as more drivers joined the platform, resulting in fewer trips and lower fares. The couple of drivers prevailed before the labor court and then in two subsequent appeals of the company.

“I am delighted and greatly relieved by this decision, which will provide relief to so many workers in the odd-job economy who desperately need it. the odd-job economy is doing nothing to help us, ”Aslam said in a statement Friday.

The case is now referred to the labor court, which could order Uber to pay compensation to around 20 original claimants. Thousands of other drivers have taken legal action against Uber and the ruling could be swiftly enforced. Drivers who have used the platform at the time of the chase may also be eligible to claim compensation.

A vital market

The move is a major defeat for Uber in the UK, where it has come under pressure from union activists and transport regulators. Much of the action took place in London, one of the world’s most important cities for the American tech company.

Uber said before the pandemic that 3.5 million Londoners regularly used its app and claimed 45,000 drivers in the capital. But the company has argued several times with city regulators over safety issues.

He spent years defending construction workers. Now he could shake up the gig economy

The UK court ruling comes just months after Californians voted to exempt Uber and other small economy businesses from state laws requiring them to classify their drivers as employees rather than independent contractors.

Being classified as an employee would have been entitled to a minimum wage and benefits such as sick leave and unemployment insurance. Uber and other small economy giants like DoorDash and Instacart have spent more than $ 200 million to publicly advocate for the exemption.

Ahead of the UK decision, Uber said it was determined to do better for its drivers regardless of the outcome.

“We believe that all self-employed people deserve to earn a living wage,” Uber CEO Dara Khosrowshahi wrote in a blog post.

“We call on policymakers, other platforms and social representatives to act quickly to build a framework for flexible income opportunities, with industry-wide standards that all platform companies must provide to self-employed workers. “, he added.

[ad_2]

Source link