(CU)_American taxi app Uber, on Friday (Feb 19), lost a crucial legal battle in the United Kingdom, as the country’s Supreme Court ruled that its drivers are workers and not independent contractors. The dismissal of the company’s appeal against the ruling, voted unanimously by the judges, is expected to have significant implications on Uber’s operations in the UK, as well as the gig economy as a whole.
Prior to the ruling, Uber drivers were treated as self-employers, meaning they are only afforded minimal protection by law. However, in the case led by two drivers of the firm, a London employment tribunal ruled in 2016 that they are entitled to several other privileges such as minimum wage, paid holidays and rest breaks.
Therefore, the Silicon Valley-based company appealed the decision all the way up to Britain’s Supreme Court, claiming that Uber acts as more of an “agency” which connects the drivers with passengers through an app. The firm also alleged that the drivers prefer this “gig” model as it’s more flexible, and also benefits Uber from a cost perspective.
Nevertheless, following the ruling on Friday, Uber said the decision only applies to the 25 drivers who brought a case against the firm in 2016, but added that it will consult all drivers in the United Kingdom in order to “understand the changes they want to see”.
“We respect the Court’s decision which focused on a small number of drivers who used the Uber app in 2016,” firm’s regional general manager for Northern and Eastern Europe, Jamie Heywood, said in a statement Friday. He noted that since then, the company has made some significant changes to its business, while consulting the drivers every step of the way.
Following the ruling on Friday, general secretary of the App Drivers & Couriers Union, James Farrar, said that the ruling will “fundamentally re-order” the gig economy and bring an end to “rife exploitation of workers” through contract trickery.
“I am delighted that workers at last have some remedy because of this ruling, but the government must urgently strengthen the law so that gig workers may also have access to sick pay and protection from unfair dismissal,” he said in a statement.
Labour unions often criticise the gig economy – where people work on a job-by-job basis for one or more companies – saying it is exploitative, although businesses say it is more advantageous owing to flexibility.
Nevertheless, the Supreme Court’s ruling is expected to have major implications for Britain’s gig economy, which is thought to have a workforce of 5.5 million people.
