UK Tribunal finds Uber drivers must be treated as employees for the purposes of employment legislation

The Central London Employment Tribunal has found that Uber, the car hire app, must treat its drivers as employees for the purposes of UK employment legislation, meaning that its drivers would be entitled to the national minimum wage and holiday pay.

The Tribunal rejected Uber’s argument that its drivers were in fact self-employed. If the judgment stands, it could have far-reaching implications for Uber drivers and for other workers in the so-called ‘gig economy’, whereby organisations contract with independent workers for short term engagements.

The case was brought by the GMB trade union, with two Uber drivers, Yaseen Aslam and James Farrar, as claimants. Mr Farrar claimed, as a driver, he earned £5 an hour after expenses, while the minimum wage at the time was £6.70. The claimants also raised health and safety issues relating to the fact that their hours worked as Uber drivers exceeded the UK statutory limits, raising the question of when its drivers working times begin and end.

The central question for the Tribunal was whether or not the claimants came within the statutory definition of an employee and, as such, benefit from the protections afforded to employees under UK law. Uber argued that as a platform, it connects self-employed drivers with passengers. Two sets of terms which the claimants were obliged to sign up to in order to continue driving stipulated that Uber is merely a tool, which accepts no responsibility or liability in respect of its drivers. The claimants conversely felt that Uber instructs, manages and controls its drivers to an extent that is consistent with the hallmarks of an employer-employee relationship.

The Tribunal maintained that it was entitled to disregard the terms accepted by the claimants, and to look to their real agreement. Finding in favour of the claimants, the Tribunal cited Uber as having resorted to “fictions and twisted language” in respect of its description of the legal relationship between the company, the drivers and passengers. The Tribunal’s reasoning emphasised the level of control Uber exhibits over drivers. Uber drivers are recruited by interviews conducted by the organisation, drivers are required to comply with the standards set by the company and it is open to the organisation to remove a driver from the system for falling below a 4.4-star customer rating, or for accepting less than 80% of lift requests. It was the conclusion of the Tribunal that drivers come within the remit of UK employment legislation, and that their working hours started when they logged into the Uber app.

Uber has said that it will appeal the decision.

Click here for the full judgment.

                                                                                                              

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