Employment Court rules four Uber drivers are employees
In October last year, the Employment Court ruled that four Uber drivers are employees rather than independent contractors, challenging the traditional gig economy model. You can read the full Uber
The court’s ruling means that Uber drivers could now be entitled to receive the minimum wage, holiday pay and other benefits that are typically provided to employees.
Two major factors that led to the court’s decision were that:
- Uber drivers are dependent on the Uber platform for the opportunity to earn income, and
- Uber exerts a significant degree of control over the way in which the work is performed.
This decision is a landmark ruling that potentially has far-reaching implications for the gig economy as a whole, where companies such as Uber typically classify their workers as independent contractors. If you engage workers as independent contractors, we recommend you carefully consider whether the nature of the work gives rise to an employment relationship. Please contact us if you need specific advice.
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