The UK Supreme Court has rejected Uber’s appeal against the labor court’s ruling that its drivers should be counted as workers who can earn minimum wages and paid holidays.
Six judges issued a unanimous decision in favor of the October 2016 Employment Tribunal Court ruling that could give Uber greater compensation burden and also lead to better terms for millions of workers in the gig economy.
Supreme Court Ruling
Uber, like many delivery and shipping companies, has claimed that its drivers are self-employed partners who are not entitled to the basic rights enjoyed by employees, including the minimum wage and legal pensions.
But the high court ruled that any attempt by the unions to establish artificial contracts intended to side-step basic employment protections were void and unenforceable.
Judges criticized Uber’s conflicting contracts which the company asked their drivers to sign them, they “can be seen to have as their object precluding a driver from claiming rights conferred on workers by the applicable legislation”.
Why Are Drivers Classified As Uber’s Employees?
The court ruled that the drivers were employees due to the level of their handling by Uber, which included setting up a fare and not having to inform them about where the passenger was going until they were picked up.
It ruled that Uber should take drivers as employees from the moment they log in to the app, until they exit. Workers have more rights than independent contractors but fewer than employees, who are entitled to maternity pay and can challenge unfair dismissal, for example.
James Farrar, the co-lead claimant and general secretary of the App Drivers and Couriers union, said: “This ruling will fundamentally reorder the gig economy and bring an end to rife exploitation of workers by means of algorithmic and contract trickery. Uber drivers are cruelly sold a false dream of endless flexibility and entrepreneurial freedom.
“The reality has been illegally low pay, dangerously long hours and intense digital surveillance. I am delighted that workers at last have some remedy because of this ruling, but the government must urgently strengthen the law so that gig workers may also have access to sick pay and protection from unfair dismissal.”
‘No Company Is Above The Law’
Frances O’Grady, general secretary of TUC, said: “No company is above the law. Uber must play by the rules and stop depriving its drivers of basic rights at work.
“This ruling is an important win for gig economy workers and for common decency. Sham self-employment exploits people and lets companies dodge paying their fair share of tax.”
Uber will not be able to file further appeals against the decision.
The case is being re-assigned to another court, which will determine the level of compensation of employees. Leigh Day, the law firm representing more than 2,000 workers with claims linked to the case, said they could each be due up to £12,000.
Uber has argued that the ruling applies to only a small number involved directly in the case and that it is not obliged to apply its findings to its other drivers.
