Business

Uber drivers are workers, UK supreme court rules

Uber drivers in Britain should be classed as “workers” and not self-employed, the UK Supreme Court ruled Friday, in a decision that threatens the company’s business model and holds broader implications for the so-called gig economy.

The ruling paves the way for Uber drivers to get benefits such as paid holidays and the minimum wage, handing defeat to the ride-hailing giant in the culmination of a long-running legal battle.

The Supreme Court’s seven judges unanimously rejected Uber’s appeal against an employment tribunal ruling, which had found that two Uber drivers were “workers” under British law.

The unanimous decision could deliver a major blow to the company’s business model in one of its most important markets, and opens the door for drivers to claim the minimum wage and paid time off, legal experts said.

The court said Friday that the group of Uber drivers that brought the case to an employment tribunal were not independent contractors because their activities were “very tightly defined and controlled by Uber.” The judge cited the company’s control over fares and how it dictates the contractual terms on which drivers perform their services.

Uber appealed against the employment tribunal decision but the Employment Appeal Tribunal upheld the ruling in November 2017.

The company then took the case to the Court of Appeal, which upheld the ruling in December 2018. The ruling on Friday was Uber’s last appeal, as the Supreme Court is Britain’s highest court, and it has the final say on legal matters.

Delivering his judgement, Lord Leggatt said that the Supreme Court unanimously dismissed Uber’s appeal that it was an intermediary party and stated that drivers should be considered to be working not only when driving a passenger, but whenever logged in to the app.

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