Uber has lost a tribunal case on the employment rights of drivers, a ruling which could affect thousands of other workers.
Two drivers, supported by the GMB union, brought legal action against the private hire firm, arguing that they should be entitled to holiday pay, a guaranteed minimum wage and breaks.
The Central London Employment Tribunal ruled in their favour, and the GMB said the outcome of the case could have 鈥渕ajor鈥� implications for more than 30,000 drivers across England and Wales. Uber says it wil appeal the judgement.
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The case centred on whether drivers with the firm, where passengers hail cars using an app, are employees.
Technology or taxi?
Uber designates its drivers as self-employed workers, claiming it is a technology company rather than a taxi firm, and says the arrangements allow people to be their own boss and work flexibly.
But drivers argue they are actual employees of the organisation, rather than independent operators running their own businesses.
In the , it said: 鈥淭he notion that Uber in London is a mosaic of 30,000 small business 听linked by a common platform is faintly ridiculous.鈥�
Similar arguments are taking place wherever Uber is operating. Last year, drivers in Massachusetts and California lobbied in court to be categorised as employees rather than independent contractors, but later settled for a cash sum instead.
In New York earlier this month, a court ruled that two fired drivers should be treated as ex-employees. However, the company has said they will appeal. Court battles over driver rights are still to come in Indiana, Texas, Florida, and Illinois.
Delight
Nigel Mackay from law firm Leigh Day, which represented the drivers, said: 鈥淲e are delighted that the employment tribunal has found in favour of our clients.
鈥淭his judgment acknowledges the central contribution that Uber鈥檚 drivers have made to Uber鈥檚 success by confirming that its drivers are not self-employed but that they work for Uber as part of the company鈥檚 business.
鈥淯ber drivers often work very long hours just to earn enough to cover their basic living costs. It is the work carried out by these drivers that has allowed Uber to become the multi-billion-dollar global corporation it is.鈥�
Speaking outside the tribunal in central London, he added: 鈥淭he tribunal has found the claimants, the Uber drivers, are workers for the purposes of the legislation and that they are therefore entitled to minimum wage and holiday pay.
鈥淭his is contrary to what Uber was suggesting, which was that they were self-employed. But they should be entitled to basic workers鈥� rights like everybody else.鈥�
Jo Bertram, the company鈥檚 regional general manager, said: 鈥淭ens of thousands of people in London drive with Uber precisely because they want to be self-employed and their own boss.
鈥淭he overwhelming majority of drivers who use the Uber app want to keep the freedom and flexibility of being able to drive when and where they want. While the decision of this preliminary hearing only affects two people we will be appealing it.鈥�
The GMB鈥檚 legal director Maria Ludkin said: 鈥淭his is a monumental victory that will have a hugely positive impact on over 30,000 drivers in London and across England and Wales and for thousands more in other industries where bogus self-employment is rife.
鈥淯ber drivers and other directed workers do have legal rights at work. The question for them now is how those rights are enforced in practice. The clear answer is that the workforce must combine into the GMB union to force the company to recognise these rights and to negotiate fair terms and conditions for the drivers.
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