Taxi firm Uber has today lost an appeal against a ruling that its drivers should be classed as workers rather than self-employed.
Two drivers, James Farrar and Yaseen Aslam, won an employment tribunal case last year after arguing that they were ‘workers’ and entitled to the minimum wage, sick pay and paid leave.
Uber challenged the ruling at the Employment Appeal Tribunal in central London, claiming 80% of its drivers would rather be classed as self-employed.
But the tribunal upheld its original decision that any driver who had the Uber app turned on was working for Uber London Ltd under a ‘worker’ contract.
Two drivers, James Farrar and Yaseen Aslam, won an employment tribunal case last year after arguing that they were ‘workers’ and entitled to the minimum wage, sick pay and paid leave. They are both pictured outside the tribunal in London today, where they were successful
The American company will appeal the tribunal outcome and insists drivers have been self-employed ‘long before our app existed’.
The GMB union said a ruling by the Employment Appeal Tribunal (EAT) was a ‘landmark victory’ for workers’ rights, especially in the gig economy.
But the association representing self-employed workers called the decision ‘astonishing’
The two drivers who originally brought the case welcomed the decision and called for more action to ‘defend workers rights’.
Mr Aslam said: ‘I have been campaigning against Uber since 2014 and although I always knew I was on the right side, it has always been a struggle that has brought enormous pressure on us.
‘I am glad that the judge today confirmed what I and thousands of drivers have known all along: that Uber is not only exploiting drivers, but also acting unlawfully.’
Mr Farrar said: ‘We have done everything we can, now it is time for the Mayor of London, Transport for London and the Transport Secretary to step up and use their leverage to defend worker rights rather than turn a blind eye to sweatshop conditions.’
Uber, which has more than 40,000 registered in London alone, insists its drivers enjoy good conditions and are happy to be classed as self-employed.
Uber will appeal the tribunal outcome and insists drivers have been self-employed ‘long before our app existed’
Tom Elvidge, its UK acting general manager, said: ‘Almost all taxi and private hire drivers have been self-employed for decades, long before our app existed.
‘The main reason why drivers use Uber is because they value the freedom to choose if, when and where they drive, and so we intend to appeal.
‘The tribunal relies on the assertion that drivers are required to take 80% of trips sent to them when logged into the app. As drivers who use Uber know, this has never been the case in the UK.
‘Over the last year we have made a number of changes to our app to give drivers even more control. We’ve also invested in things like access to illness and injury cover and we’ll keep introducing changes to make driving with Uber even better.’
The case has implications for more than 100,000 people in Britain’s gig economy, where people work job-to-job with little security and few employment rights.
Such employment has surged as smart phones and the Internet cut the link between jobs and the traditional workplace.
Many professionals value the independence granted by self-employment, which allows them to pick and choose when they work.
Mr Farrar and Mr Aslam, outside the Central London Employment Tribunal on July 21, welcomed today’s ruling
Chris Bryce, chief executive of the Association of Independent Professionals and the Self Employed (IPSE) said: ‘It is astonishing that the employment tribunal granted the two drivers worker status.
‘A key element of being a worker is having to turn up for work even if you don’t want to.
‘This is clearly not the case with people who drive through Uber – they choose when and how long they work for by logging on or off the app.
‘The Government needs to seriously consider introducing a statutory definition of self-employment.’
Maria Ludkin, the GMB’s legal director, said: ‘This landmark decision is a yet more vindication of GMB’s campaign to ensure drivers are given the rights they are entitled to and that the public, drivers and passengers are kept safe.
‘GMB urges the company not to waste everyone’s time and money dragging their lost cause to the Supreme Court.’
TUC general secretary Frances O’Grady said: ‘Uber should throw in the towel and accept today’s judgment. No company, however big or well-connected, is above the law. Uber must play by the rules and stop denying its drivers basic rights at work.’
Mr Farrar (left) listens to Mr Aslam as he speaks outside Transport for London (TFL) offices in central London during a demonstration against Uber