For four years, the professional situation of Uber drivers in the UK has been like a colorful beach ball: insubstantial, hitting from court to court, looking different depending on where you are. On Friday, the country’s highest court ruled: A group of 25 Uber drivers who filed a lawsuit against the company should never have been treated as self-employed, the ministers concluded. Instead, workers are entitled to a national minimum wage, paid holidays, rest breaks and protection from discrimination.
For now, the decision applies only to the 25 drivers. But it is the latest sign of governments around the world pushing the business model of Uber and its giant brothers – including DoorDash, Lyft, Amazon, Instacart and, in the UK, the food delivery company Deliveroo. Lawmakers, lawyers, unions and organizers want companies to treat their workers better, even if companies remain unprofitable.
“In the past 12 months, there has been a fluctuation in the courts to protect workers ‘rights in the gig economy,” said Ruwan Subasinghe, legal director of the International Transport Workers’ Federation, which represents nearly 20 million workers in 150 countries. Last March, France’s high court ruled that an Uber driver did not qualify as a self-employed contractor, exposing the transportation company and handing over tax liability. A similar decision occurred last fall in Italy. Belgium’s labor authority filed a lawsuit contesting the status of food delivery workers last month. Just this week, judges in the Netherlands ruled that Deliveroo bicycle couriers do not qualify as self-employed workers, and that Deliveroo must pay by the hour instead of by delivery.
Out of court, the Spanish government is set to launch new strict rules changing the employment situation of the country’s food delivery workers later this month. And the European Union starts this month to discuss legislation that governs platform-based work, with the aim of issuing new labor rules by the end of the year. The EU could, for example, loosen antitrust laws to allow gig workers to negotiate collectively, a type of coordination that today can be considered an illegal cartel.
Uber has argued for years that it is simply a technology platform, connecting business owners – people who own cars and want to make money – with customers who want rides and snacks. But Friday’s unanimous decision by the UK Supreme Court ruled that, unlike other independent contractors, Uber drivers have no control over the main parts of their work. The court said drivers do not set their own contract terms, which are penalized for refusing many ride requests, which are assessed – using passenger ratings – as employees. Sure, the court said, Uber drivers can theoretically choose which type of car to use – but Uber first examines the make and model.
In response to the decision, Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, stressed that the decision applies only “to a small number of drivers who used the Uber app in 2016” and that the company made changes in your driver app since then. “We are committed to doing more and now we will consult with all active drivers across the UK to understand the changes they want to see,” he said. Uber did not immediately announce any changes to its service, but in the past it has said it will raise prices if it is forced to treat more of its drivers as employees.
Similar arguments are taking place in the USA. A California law of 2019 restricted employers’ use of independent contractors. Soon after, a federal appeals court ruled that Uber drivers should be treated as employees, entitled to minimum wages, labor compensation and other benefits. In the end, Uber, Lyft, DoorDash, Instacart and others evaded lawmakers and courts by spending more than $ 200 million on a vote that allows them to continue to treat workers as contractors, with some additional benefits. Californians approved Proposition 22 in November.