Legal News

Uber Loses UK Appeal in Worker Classification Case
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Uber

Summary: Uber UK appears to be losing its battle to keep its drivers classified as independent contractors. 

This week, a UK tribunal set Uber back when it ruled that its drivers could be classified as workers and not independent contractors. The multi-billion dollar ride-share company lost its appeal against a decision from last year. According to Tech Crunch, “Uber’s appeal against the ruling was heard in September. But the Employment Appeal Tribunal has now upheld the original verdict — denying a first appeal.”

  
What
Where


The original ruling only applies to the people who brought on the case, but what could hurt Uber is that it sets a precedent for other drivers.

Uber’s business model is dependent on its drivers remaining independent contractors. Drivers provide their own cars and insurance, and they set their own hours. However, Uber would have nothing if these drivers did not exist, but the company said that it would be too costly to give them employee benefits such as insurance or paid time off.

According to Tech Crunch, Uber UK has almost 50,000 drivers and the cost of changing their employment status to worker and not independent contractor could cost them tens of millions of pounds.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




“Almost all taxi and private hire drivers have been self-employed for decades, long before our app existed. The main reason why drivers use Uber is because they value the freedom to choose if, when and where they drive and so we intend to appeal,” a spokesman for Uber said. “The tribunal relies on the assertion that drivers are required to take 80% of trips sent to them when logged into the app. As drivers who use Uber know, this has never been the case in the UK. Over the last year we have made a number of changes to our app to give drivers even more control. We’ve also invested in things like access to illness and injury cover and we’ll keep introducing changes to make driving with Uber even better.”

In their appeal, Uber said that they acted as agent’s for drivers, finding them clients, but the UK tribunal was not buying that explanation. Although this appeal failed, Uber can next file with the UK Court of Appeal and the UK Supreme Court, which means this case is likely not over. However, a UK attorney predicts that if Uber were to continue fighting, they wouldn’t win.



“If the case proceeds to the Supreme Court, it will be keenly fought by excellent lawyers but the signs suggest that Uber will continue to be driving uphill,” Sean Nesbitt, partner in international law firm Taylor Wessing LLP, said to Tech Crunch. 

A plaintiff in the case, Yaseem Aslam, said that he was happy with the judge’s ruling.

“I am glad that the judge today confirmed what I and thousands of drivers have known all along: that Uber is not only exploiting drivers, but also acting unlawfully. We will carry on fighting until this exploitation stops and workers’ rights are respected,” Aslam said.

What do you think of Uber’s business model? Let us know in the comments below.



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Litigator with 5-10 years of general insurance defense experience

USA-FL-West Palm Beach

Boutique litigation firm is looking for an experienced litigator with 5-10 years of general insuranc...

Apply Now

Transactional Real Estate Attorney with 4-10 years of experience

USA-CA-San Diego

San Diego office is seeking a transactional real estate attorney with 4-10 years of experience.

Apply Now

Real Estate/Business Transaction Attorney with 8+ years of experience

USA-WA-Seattle

Seattle office is seeking a real estate & business transaction attorney with 8+ years of experience....

Apply Now

Litigation Attorney with 2-5 years of insurance coverage experience

USA-MD-Towson

Towson office of our client seeks litigation attorney with 2-5 years of business, insurance coverage...

Apply Now

RELEVANT JOBS

Contract Attorney

USA-CA-Beverly Hills

We are looking for a civil business litigator with 3+ years of experience who is capable of attendin...

Apply now

Attorney

USA-CA-San Francisco

As an in-house legal counsel at Wix’s legal department, you will play a significant role in de...

Apply now

Experienced Insurance Defense Attorney Needed

USA-NY-Bohemia

Defense Negligence firm with offices in Nassau County and main office in Suffolk County seeks a full...

Apply now

Attorney

USA-MO-Kansas City

Successful, expanding KC personal injury law firm seeks an attorney with 5+ years personal injury li...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top