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This week’s Employment Tribunal decision that two Uber drivers were workers rather than self-employed is likely to be the first of many challenges to the big players in the gig economy, said a leading Midlands employment lawyer.
Tim Lang of George Green LLP said “A worker is defined under the Employment Rights Act 1996 as an individual who has entered into or works under a contract of employment or any other contract, whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not that of a client or customer of any profession or business undertaking carried on by the individual. “
Mr Lang continued “Uber argued that the drivers were self-employed without any employment rights. The tribunal found Uber’s argument that it’s business in London consisted of 30,000 small businesses, each of which consisted of one driver, was faintly ridiculous. The effect of the ruling , which is likely to be appealed , is that all Uber drivers will be entitled to 5.6 weeks’ paid annual leave each year, a maximum 48 hour working week , rest breaks, the national minimum wage and whistleblowing protection. “
Mr Lang continued “The case increases the chance of similar companies facing claims that their self-employed contractors have worker status. Companies who are in any doubt about the status of their contractors should take urgent legal advice regarding the position. In the meantime we may all find our taxi rides becoming more expensive!“