LEGAL
Uber drivers get workers’ rights
Andrew Macmillan (pictured), Employment Partner at Gateley’s Nottingham office, looks at a recent tribunal on workers’ rights.
An Employment Tribunal has found that Uber taxi drivers are workers and are entitled to receive the National Minimum Wage and holiday pay. The ruling in Aslam and others v Uber BV and others 2202550/2015 is important as it will have an immediate impact on the thousands of other Uber drivers who have previously been regarded as self-employed.
‘The ruling could signal that the employment status of many other ‘self-employed’ contractors will now be looked at more closely’
In reaching this conclusion, the employment tribunal rejected the argument that Uber just enabled the individuals to work for themselves as taxi drivers through the technology it offered. The reality was that it was not a technology company, it was a business supplying transportation services. The Uber drivers, rather than being in business in their own right, had
contributed towards the success of Uber as a transportation service business.
In respect of worker status, it should be emphasised that the ruling does not mean that the Uber drivers are employees with employee rights. They are not going to be able to claim unfair dismissal or redundancy pay. A worker, as opposed to an employee, has no right to receive work and is under no obligation to carry out the work. However, their worker status does mean that they will have certain protections. There is a minimum requirement of 5.6 weeks paid leave per year and the National Living Wage is £7.20 per hour. The consequences will be far-reaching, not just because Uber may face
claims in respect of the minimum wage and pay for holidays taken, but also because of the tax consequences, as HMRC will now expect PAYE deductions to be made from payments to the drivers. It is still to be confirmed whether Uber will appeal but considering the
huge impact the ruling is likely to have and the cost of the consequences, this may just be the start of litigation that will continue for years to come.
business network December 2016/January 2017 45
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