Supreme Court Rules That Uber Drivers Are Workers

This landmark judgment means that Uber drivers on terms similar to those of the Claimants in this case are entitled to basic rights including holiday pay, rest breaks and the national minimum wage whilst they are in their licenced territory and logged into the Uber app. This is true even if they are waiting for a job.

For a detailed look at the facts and issues in this case, see our articles on the original Employment Tribunal judgment and the Employment Appeal Tribunal decision.

The Supreme Court has agreed with the lower court that despite complicated contractual documents stating that the drivers were in business for themselves, the degree of subordination and control the drivers were under meant that, in practice, they were working for Uber.  

The consequences of this decision are potentially far reaching. For the Claimant's themselves, the case now goes back to the Employment Tribunal to determine whether they are owed unpaid wages and holiday pay.

For Uber, the questions will be how many other drivers will take action against them and what the overall financial cost will be. We understand that there are potentially thousands of linked cases which may now be difficult to defend. There is also the potential for significant liabilities around unpaid pension contributions and tax.

Uber themselves say they have changed their terms and conditions since the start of this case five years ago and the number of similar claims may be limited.

For other gig economy employers, there will now be an urgent need to review their own terms and conditions. Do they reflect the reality of the situation that gig workers experience on a day to day basis? If there is a risk that some of their staff may be workers, does this give rise to any potential liabilities and how should the workforce be structured going forward?  The Uber case illustrates the importance of analysing the reality of people's working experiences rather than just the contracts which overlay them.

This last point is also true for all employers. Now may be the moment to review the status of any atypical workers you employ. VWV's Employment Law team is well placed to assist with any such review.

For further advice in relation this case and employment status in general, please contact Michael Halsey in our Employment Law team on 07554 432 829, or complete the form below.