A driver uses the Uber app to drop off a passenger in London.
Chris J. Ratcliffe | Bloomberg via Getty Images
LONDON – Uber lost a crucial legal battle in the UK on Friday as the country’s Supreme Court upheld the ruling that its drivers are workers, not independent contractors.
The Supreme Court voted unanimously to dismiss Uber’s appeal against the ruling. The decision could have huge implications for the Uber business in the UK, as well as for the wider concert economy.
Friday’s verdict ends a nearly five-year legal battle between Uber and a group of former drivers who claim to be workers entitled to labor rights, such as the minimum wage, holiday pay and rest breaks.
In 2016, an employment tribunal ruled in favor of drivers, led by Yaseen Aslam and James Farrar, who claimed to be Uber employees and therefore entitled to certain job protections.
Uber insists that its drivers are self-employed and act rather as an “agency” that connects them with passengers through an app. Uber wants to keep the legal classification of its drivers unchanged as independent contractors, arguing that drivers prefer this “concert” model because it is more flexible – it also benefits Uber from a cost perspective.
“We respect the Court’s decision, which focused on a small number of drivers who used the Uber app in 2016,” Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, said in a statement on Friday.
“Since then we have made some significant changes in our business, guided by drivers at every step. These include giving even more control over how they earn and offering new protections, such as free insurance in case of illness or injury. “
Heywood added: “We are committed to doing more and now we will consult with every active driver in the UK to understand the changes they want to see.”
The UK case reflects Uber’s legal battle with California regulators, who last year tried to reclassify drivers of Uber and other transportation services, such as Lyft, as employees to give them more job protections.
But voters backed a voting measure called Proposition 22, which exempted Uber and other concert-saving platforms from reclassifying drivers as employees.
What’s next?
The Supreme Court ruling may jeopardize the Uber business model in the UK Although it only refers to the drivers involved in the 2016 case, in theory it is applicable to other drivers using the Uber application.
The company will now have to return to the employment tribunal to determine the compensation for the group of drivers. But it could face other demands from thousands of other drivers in the country.
It also has major implications for the UK concert economy, which is believed to have a workforce of around 5.5 million people. Other companies operating a similar model to Uber include Bolt, Ola and Deliveroo.
“This verdict will undoubtedly have far-reaching implications for all operators in the concert economy and will make it more difficult for companies that hire people through digital platforms to claim to be self-employed, despite contractual documentation that might say otherwise.” , said Helen Crossland, a partner at the British law firm Seddons.