A British tribunal ruled on Friday that Uber ought to treat its drivers as workers and pay them the minimum wage and holiday pay, in a decision that could hit a large number of firms and convey a hit to the ‘gig economy’.
Two drivers conveyed their case to a work tribunal in July, saying the quickly extending app, which permits clients to book and pay for a taxi by cell phone, was acting unlawfully by regarding them as independently employed and not giving certain rights.
The Central London Employment Tribunal decided Friday that Uber drivers are employees of the Silicon Valley Company, not independently employed individuals. In that capacity, they are qualified for a minimum wage and different securities under the nation’s labour laws.
“Uber drivers often work very long hours just to earn enough to cover their basic living costs,” said Nigel Mackay, the attorney from law firm Leigh Day who is representing two workers who brought forward the case.
“It is the work carried out by these drivers that has allowed Uber to become the multi-billion-dollar global corporation it is,” Mackay said.
“We are pleased that the employment tribunal has agreed with our arguments that drivers are entitled to the most basic workers’ rights, including to be paid the national minimum wage and to receive paid holiday, which were previously denied to them,” he said.
The tribunal rejected Uber’s contention that everybody who agrees to the services is a self-employed entity. The company has confronted comparable claims in different wards.