The court said on Friday that a labor court got it right by ruling that Uber drivers are workers, rejecting a company appeal. The decision was unanimous. Uber drivers are workers, the court said, because the company sets fares and exercises significant control over drivers using the app.
The lawsuit against Uber was first opened in a British labor court by Yaseen Aslam and James Farrar in 2016, when the two men were driving to Uber. Aslam worked for another company, but said he was attracted to Uber for lucrative salaries and bonuses.
But Aslam said the advantages quickly dried up as more drivers joined the platform, resulting in fewer trips and lower fares. The driver pair prevailed in the labor court and then in two subsequent appeals by the company.
“I am very happy and very relieved with this decision, which will bring relief to so many workers in the giant economy who desperately need it. During the six years of these procedures, we have observed the government commission and then we have filed a review of the gigantic economy not yet. does nothing to help us, “Aslam said in a statement on Friday.
The case now goes back to the labor court, which could order Uber to pay damages to about 20 original claimants. Thousands of other drivers have filed lawsuits against Uber, and the decision can be applied quickly to them. Drivers who used the platform at the time of the lawsuit can also claim compensation.
A vital market
The decision is a significant defeat for Uber in the UK, where it is under pressure from labor activists and transportation regulators. Much of the action took place in London, one of the most important cities in the world for the United States technology company.
Uber said before the pandemic that 3.5 million Londoners regularly used its app and that it claimed 45,000 drivers in the capital. But the company has repeatedly fought with city regulators over security issues.
The UK court’s decision came just months after Californians voted to exempt Uber and other companies from the giant economy from state laws that compel them to classify their drivers as employees, rather than as independent contractors.
Being classified as an employee would be entitled to a minimum wage and benefits such as sick leave and unemployment insurance. Uber and other economic giants like DoorDash and Instacart spent more than $ 200 million to publicly defend the exemption.
Before the UK decision was rendered, Uber said it was committed to doing better for its drivers, regardless of the outcome.
“We believe that all self-employed people deserve to receive a decent salary,” wrote Dara Khosrowshahi, Uber’s CEO, in a blog.
“We are calling on lawmakers, other platforms and social representatives to act quickly to build a framework for flexible earning opportunities, with industry-wide standards that all platform companies must provide for self-employed workers,” he added.