Taxi startup Uber has been unsuccessful in its attempts to overturn a ruling which says it must treat its drivers as official workers.

Earlier this year, the London Employment Tribunal ruled that Uber was acting unlawfully by not providing drivers with basic workers’ rights. This includes holiday pay, guaranteed minimum wage, and entitlement to breaks.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The Silicon Valley-based startup appealed the ruling. It says it is not an employer but merely an agent for the drivers. It said the ruling could deprive its drivers of the “personal flexibility they value.”

However, earlier today UK judge Jennifer Eady, rejected Uber’s appeal, instead favouring the startup’s former drivers and the GMB Union which had been fighting the battle.

An employment solicitor from the law firm, Leigh Day which was representing the drivers, Nigel Mackay, said:

“We are very pleased that the EAT has rejected Uber’s appeal. We have always believed that the Employment Tribunal’s decision from last October was entirely correct in saying that our GMB member clients were entitled to workers’ rights such as the minimum wage and holiday pay.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Uber London tribunal appeal decision has ramifications for the whole gig economy

Uber could face huge costs if its workers appeal for back pay for the funds they are now entitled to.

The company has 40,000 drivers in London alone, though not for much longer if Transport for London has its way.

Beyond that, the decision will have could impact all of the UK’s 1m workers in the gig economy.

Other firms in the sector, such as food-delivery company Deliveroo, have long maintained that they would offer such benefits to its workers if the UK government pushed through the necessary legislation.

This ruling is now the UK law, regardless of parliamentary legislation.

However, it’s not all rosy. Uber could appeal the appeal, which could see the case end up in the UK’s Supreme Court.

It’ll be interesting see how Uber’s new chief executive Dara Khosrowshahi handles this challenge. In an interview published yesterday in the New York Times, he says that the Uber under former chief executive and co-founder Travis Kalanick is not going to be the Uber under him. This could be his chance to prove that.