June 24, 2017

​UK court rules Uber drivers are employees, not contractors

Enlarge Image A UK court rules that Uber drivers should be classified as employees rather than independent contractors. A London court ruled Friday that Uber drivers should be classified as employees, rather than independent contractors, a decision that could have serious ramifications on the ride-hailing company and its so-called "gig economy" brethren.

"This judgment acknowledges the central contribution that Uber’s drivers have made to Uber’s success by confirming that its drivers are not self-employed, but that they work for Uber as part of the company’s business," Nigel Mackay, a lawyer for the firm Leigh Day that represented UK Uber drivers, said in a statement .

Uber’s current classification of drivers as contractors means the company is not responsible for many costs, including Social Security (in the US), health insurance, paid sick days, gas, car maintenance and much more. If all drivers are eventually deemed employees, Uber will have to pay for all of this, as well as manage a workforce of more than one million.

"This is a ground-breaking decision," Annie Powell, another Leigh Day lawyer who worked on the case, said in a statement. "It could have impact not just on the thousands of Uber drivers working in this country, but […]

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The News for the Gig Economy Staff is constantly searching the web for the latest news regarding freelancing and gig platforms to bring them to you in one handy place. All articles with this generic author have been sourced with the original location at the bottom of the piece. We encourage our readers to view the original source of all excerpts. NGE is a project of ARC Online, LLC.

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