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Uber loses five-year legal battle over driver employment status

In Germany, the company was required to work with licensed private vehicle companies after being banned in 2015.

• February 19, 2021
Uber Taxi
Uber Taxi

Uber lost a five-year-long legal fight in the U.K. on Friday, as the Supreme Court ruled that its drivers should be classified as workers instead of independent contractors.

“Working time is not limited to periods when driving passengers,” Judge George Leggatt said in a summary of the ruling. It also “includes any period when a driver is logged into the app and ready and willing to accept trips.”

The ruling concluded the legal tussle between Uber and a group of former drivers who claimed they were workers entitled to employment rights like a minimum wage, holiday pay, and rest breaks.

The Supreme Court came to this decision, saying the relationship between the ride-hailing company and its drivers is that of “subordination and dependency” as Uber sets the prices for each ride the drivers carry out, and the drivers are not permitted to set their own prices as they would if they were self-employed and sets the terms and conditions of using its service, and actively prevents drivers from reaching agreements with riders outside the app. 

The suit was initiated by two drivers in 2016, who argued that they should be considered “workers” rather than self-employed.

It was established in the employment tribunal that the drivers were “workers” and that they were working whenever the Uber app was switched on or within the territory authorised to work; and were able and willing to accept assignments. 

These findings were subsequently upheld by the employment appeal tribunal and the appeal court. 

Uber has been embroiled in several legal actions over the state of its drivers.

In March 2020, judges in France ruled that Uber drivers were employees. In the United States, initial rulings given in California in favour of worker status for Uber and Lyft drivers were overturned in a state-wide referendum. 

In Germany, the company was required to work with licensed private vehicle companies after being banned in 2015.

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