UK Supreme Court Rules Uber drivers are employees, not contractors

LONDON – Uber lost a crucial legal battle in the UK on Friday when the country’s Supreme Court upheld a ruling that its drivers are workers, not independent contractors.

The Supreme Court voted unanimously to dismiss Uber’s appeal against the ruling. The decision could have huge implications for Uber’s UK operations, as well as the wider gig economy.

Friday’s verdict caps a nearly five-year legal battle between Uber and a group of former drivers who claim they were employees entitled to labor rights such as minimum wages, vacation pay and rest breaks.

In 2016, an employment court ruled in favor of the drivers, led by Yaseen Aslam and James Farrar, who claimed they were workers employed by Uber and therefore entitled to certain employment protections.

Uber maintains that its drivers are self-employed and that it acts more like an ‘agency’ connecting them to passengers via an app. Uber wants to leave the legal classification of its drivers as independent contractors unchanged, arguing that drivers prefer this “gig” model because it is more flexible – it also benefits Uber from a cost perspective.

“We respect the court’s decision, which targeted a small number of drivers using the Uber app in 2016,” Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, said in a statement Friday.

“Since then, we’ve made some significant changes to our business, with drivers guided every step of the way. These include giving them even more control over how they earn and offering new protections such as free insurance in case of illness or injury. . “

Heywood added: “We are committed to doing more and will now consult every active driver in the UK to understand the changes they want to see.”

The UK case reflects Uber’s legal battle with California regulators, who last year attempted to reclassify drivers from Uber and other taxi services like Lyft as employees to provide them with more job protection.

But voters backed a vote called Proposition 22, which exempted Uber and other gig economy platforms from reclassifying drivers as employees.

The Supreme Court ruling may jeopardize Uber’s business model in the UK. While it only concerns drivers involved in the 2016 case, it theoretically applies to other drivers using Uber’s app.

The company will now have to go back to the labor court to determine the compensation for the group of drivers. But it could be faced with further claims from thousands of other drivers in the country.

It also has a major impact on Britain’s gig economy, which is estimated to have a workforce of about 5.5 million people. Other companies with a similar model to Uber’s include Bolt, Ola and Deliveroo.

“This verdict will undoubtedly have far-reaching implications for all operators in the gig economy and will make it more difficult for companies to engage people through digital platforms to claim they are self-employed, despite contractual documentation that might indicate otherwise,” Helen said. Crossland. , partner at the British law firm Seddons.