The UK Supreme Court has unanimously dismissed Uber's appeal against a landmark employment tribunal ruling that its drivers should be classified as workers, entitling them to the minimum wage and paid holidays. The decision, handed down by six justices, upholds the October 2016 tribunal ruling that could result in significant compensation payouts and improve conditions for millions in the gig economy.
Uber had argued that its drivers are independent self-employed 'partners' and not entitled to basic worker rights such as the minimum hourly wage and workplace pension. However, the Supreme Court stated that any attempt by organisations to draft artificial contracts to avoid basic employment protections is void and unenforceable. The judges criticised Uber's contracts, noting they were designed to prevent drivers from claiming statutory rights.
The court concluded that drivers are workers due to Uber's level of control, including setting fares and not disclosing passenger destinations until pickup. It ruled that drivers must be considered workers from the moment they log on to the app until they log off. Workers have more rights than independent contractors but fewer than employees.
James Farrar, co-lead claimant and general secretary of the App Drivers and Couriers union, welcomed the ruling, saying it will 'fundamentally reorder the gig economy' and end exploitation. Frances O'Grady, TUC general secretary, stated: 'No company is above the law. Uber must play by the rules and stop denying its drivers basic rights at work.'
Uber cannot appeal further. The case returns to the employment tribunal to determine compensation, with law firm Leigh Day suggesting each of over 2,000 claimants could be due up to £12,000. Uber's regional general manager Jamie Heywood said the company respects the decision but noted it focused on a small number of drivers from 2016, and that Uber has since made changes including giving drivers more control and providing free insurance for sickness or injury.
