Workers’ rights ruling set to change Britain’s gig economy
RIDE-HAILING APP’S DRIVERS ENTITLED TO MINIMUM WAGE AND HOLIDAY PAY, SAY JUDGES
BRITAIN’S top court last Friday (19) ruled that drivers for US ride-hailing giant Uber are entitled to workers’ rights, in a judgement with huge implications for the so-called “gig economy”.
The Supreme Court’s unanimous ruling that the drivers are workers followed a protracted legal battle with the Silicon Valley taxi and delivery company.
“The Supreme Court unanimously dismisses Uber’s appeal,” judge George Leggatt said last Friday.
“The legislation is intended to give certain protections to vulnerable individuals who have little or no say over their pay and working conditions.”
A total of 25 drivers were part of the case, but Uber said the verdict did not apply to all of its current 60,000 drivers in Britain, including 45,000 in London, one of its most important global markets.
“This has been a gruelling fouryear legal battle for our members – but it’s ended in a historic win,” said Mick Rix from the GMB trade union. “The Supreme Court has upheld the decision of three previous courts, backing up what GMB has said all along – Uber drivers are workers and entitled to breaks, holiday pay and minimum wage.”
The court ruled that the service performed by drivers was “very tightly defined and controlled by Uber” so they could not be considered to be self-employed.
The drivers were “in a position of subordination and dependency... such that they have little or no ability to improve their economic position through professional or entrepreneurial skill,” the ruling added. “The drivers were rightly found to be ‘workers’.”
Uber said it respected the verdict. “We are committed to doing more and will now consult with every active driver across the UK to understand the changes they want to see,” said Jamie Heywood, its manager for northern and eastern Europe.
The gig economy, where people tend to work for one or more companies on a job-by-job basis, has faced criticism from trade unions who say it is exploitative. However, businesses say many of those working in it enjoy the flexibility.
Lower courts had ruled in 2016, 2017 and 2018 in favour of a group of 20 Uber drivers who argued
they were entitled to employee status, given the length of time they had been working through the Uber app, and the way that the company oversaw their work.
Uber insisted the drivers were self-employed since they chose their own hours and place of work, and often found passengers through rival apps.
The complainants can now ask an employment tribunal for compensation, which could trigger far-reaching changes affecting all ride-hailing drivers.
Lead claimant James Farrar
said he was “delighted” by the ruling, claiming it would “fundamentally re-order the gig economy” in Britain – in which people do short-term work without formal contracts, or work without guaranteed hours.
Rix tweeted that last week’s decision was “another nail in the coffin” for the gig economy, which employs an estimated 5.5 million people in Britain.
Couriers for the Deliveroo food app are already fighting in the Court of Appeal in London for the right to collective bargaining.
Lawyers Paul Jennings and Rachel Mathieson, who represented former Uber drivers, said the case will have an “enormous impact” on London’s 45,000 Uber drivers.
Uber claimed that it has already changed the way it works since the legal action began.
Last Friday’s decision does not affect Uber’s right to operate in London, which has been subject to a separate dispute. The platform last September regained the right to operate in London for 18 months, after a court overruled a decision by city authorities to suspend its licence due to concerns over passenger safety.
London mayor Sadiq Khan said the ruling was a “landmark decision for people who suffer from low pay and a lack of security at work”.
It could still take several months for the details of the decision to be worked out at a further employment tribunal hearing over sums owed to drivers, according to lawyers.
Law firm Leigh Day says eligible drivers may be entitled to an average of £12,000 in compensation. It represents more than 2,000 potential claimants.