Monday, 22 February 2021

Uber Loses Landmark Case in the Supreme Court

After a long-running legal battle, the Supreme Court has now reached a decision on the status of Uber drivers in the case of Uber v Aslam.

The Court held that Uber drivers must now be classified as ‘workers’, rather than self-employed individuals, from the time they log on to the app, until they the time they log off, which includes time spent waiting to pick up passengers.

The judgment follows Uber’s appeal to the Supreme Court, after losing three earlier rounds in the Employment Tribunal and the High Court.

The decision means that tens of thousands of Uber drivers are now entitled to certain employment rights such as minimum wage for their entire working day (including 2 years’ back pay, possibly more), 5.6 weeks paid annual leave as well as whistleblowing and related rights. The judgment does not, however, give them ‘employee’ status, and so they do not, for example, have any entitlement to a redundancy payment or to claim unfair dismissal.

The ruling may have a wider effect in threatening Uber’s current business model, and it remains to be seen how this decision will affect gig economy individuals working for competing apps, and the impact in terms of potential claims.

This update has been provided by our Alpha Team. Alpha is our HR and Employment Support Service. To find out how we can help your business call us on 0845 450 1561.