Uber loses landmark case.

Uber loses landmark case as Tribunal rules drivers are "workers". An Employment Tribunal has ruled that two drivers who provide services to Uber are actually "workers" at law.  

 

This means they should be entitled to a limited number of employment rights which include: 

 

The GMB Union, which supported the two drivers' claim, said the outcome of the case could have major implications for more than 30,000 drivers across England and Wales.  

 

Uber is essentially an "App" which connects drivers with passengers directly, instead of through a centralised booking service or hailing a taxi in the street.  The Company, which categorises its drivers as self-employed contractors, claims that it is a technology company rather than a taxi firm and that this arrangement allows drivers to be their own boss and work flexibly.  

 

However, in this case, the drivers successfully argued that they were engaged as workers rather than independent operators running their own businesses. Uber has confirmed that it will appeal this decision.

 

For now, any Uber drivers should consider bringing tribunal claims on the assumption they are "workers" and ask for the hearings to be stayed (put on hold) pending any appeals of the Tribunal's decision.  

 

Whilst this decision is based on the Uber business model and the particular facts of the case, it does increase the chance of other companies facing claims that their "self-employed" contractors have worker status (for example, delivery groups/couriers).

 

Prior to the outcome of this case, a Commons Select Committee had already launched an inquiry focusing on the rapidly changing nature of work which includes the status and rights of agency workers, the self-employed and those working for companies like Uber in the "gig economy", where Apps are used to match users with providers.  No doubt there will be further developments in this area over the coming months.

 

If you require advice regarding this or any other employment issues, please contact our Employment Solicitor Jo Handler on 0845 603 0708 for more information.

 

 

National Solicitors

Employment Team