Uber Drivers Aren’t Self Employed, U.K. Tribunal Rules
The decision, which affirmed a ruling made last year, means
that Uber will have to ensure its drivers in Britain are paid a minimum wage and entitled to time off, casting doubt on a common hiring model in the so-called gig economy that relies on workers who do not have a formal contract as permanent employees.
In the case before the employment tribunal on Friday, two Uber drivers, James Farrar and Yaseen Aslam, had challenged the company on behalf of a group of 19 drivers, saying
that the service had denied them basic protections by classifying them as self-employed.
In a statement made after the ruling, Uber’s acting head in Britain, Tom Elvidge, said the
company would appeal the decision to the Court of Appeal or to Britain’s Supreme Court.
LONDON — Uber suffered another blow on Friday to its operations in its biggest market outside the United States
when an employment tribunal in London rejected the company’s argument that its drivers were self employed.
Though the service has expanded at a breakneck pace and grown into a behemoth valued at $70 billion, it has grappled allegations
that it does not do enough to vet its drivers and revelations that it used software to evade the gaze of the authorities, among other issues.
“The impact of this ruling could affect thousands of drivers, and not just drivers but millions of workers across the U. K.”
“It just means we can’t be exploited,” he added.
Companies argue that such a system increases the flexibility for both workers and employers in the modern economy,
but critics say it is exploitative and deprives employees of key benefits like unemployment insurance.