Uber’s defeat rattles the gig economy
Judges rule drivers ARE workers
CAB hailing giant Uber suffered a landmark defeat yesterday, with potential consequences for millions of “gig economy” workers.
The Supreme Court ruled that drivers for the app must be treated as workers, rather than self-employed.
As such, they are due rights such as holiday pay, a guaranteed minimum wage and breaks.
Uber insisted the ruling related to only a small number of drivers.
But the GMB union and law firm Leigh Day said tens of thousands of Uber drivers could be due an average £12,000 each in compensation.
Mick Rix, GMB national officer, said: “This has been a gruelling fouryear legal battle for our members, but it’s ended in a historic win.”
Experts said the ruling could have implications for others working with few or no guarantees. It came after The Mirror revealed how workers at online giant Amazon’s respective agencies struggled on effectively zero-hour contracts, with shifts axed at the last minute and wages unpaid.
Andy McDonald, Labour’s Shadow Employment Rights and Protections Secretary, said: “This is a hugely important ruling with significant implications for the gig economy.
“Uber drivers and all gig economy workers should get basic rights at work.”
TUC General Secretary Frances O’Grady called it “an important win for gig economy workers and for common decency”, adding: “Sham self-employment exploits people and lets companies dodge paying their fair share of tax.”
We revealed this month how Uber paid no UK corporation tax in 2019, despite a £14million jump in its turnover, by using a staff shares windfall.
Former Uber drivers James Farrar and Yaseen Aslam took Uber to an employment tribunal in 2016. It ruled Uber drivers were entitled to workers’ rights – a ruling upheld by Court of Appeal judges. Uber’s lawyers told Supreme Court justices the ruling was wrong, and said drivers were “independent, third party contractors”. But lawyers for drivers said the tribunal was entitled to conclude drivers were working. Jamie Heywood, Uber’s regional manager for northern Europe, said: “We’re committed to doing more and will consult every active driver to understand the changes they want.”