Uber, the famous ride hailing giant, has come up against another obstacle to its business model in the UK. An employment tribunal reiterated its ruling of more than a year ago that drivers are, in fact, workers who are entitled to standard worker protections and benefits. These include routine breaks, time off, and a guaranteed minimum wage. The tribunal declined Uber’s appeal of the original ruling.
The company intends to move forward with additional appeals as necessary, including the Court of Appeal and potentially the Supreme Court.
The dispute
The disagreement between Uber and its drivers focuses on the level of control and freedom drivers retain in the performance of their work. Drivers assert that the company controls the rate at which they perform their work, penalizes them for conducting a certain number of trips in a row, and directs them to follow various instructions.
The company, on the other hand, points out that the drivers can control their own schedules and decline trips they don’t wish to take.
The case in the UK concerns whether companies providing these types of “gigs” are utilizing actual self-employed persons, or improperly classifying their employment status. Workers under the law are entitled to certain rights such as minimum wage, sick pay, etc. Self-employed individuals do not retain these rights.
From the beginning, Uber has adhered to the definition of their drivers as “self-employed” and serving customers. It has avoided and denied the use of the term “workers” to describe the tens of thousands of individuals that make the company run. It claims that its drivers have the type of flexibility that accompanies self-employment.
Uber critics hold to the view that drivers are not self-employed as is commonly understood. Some evidence they point to is the fact that drivers are not able to set their own prices, can be logged off for declining trips, and are potentially evaluated by star ratings. The original ruling by the judge accounted for the level of obligation the company places on its drivers.
The judge ultimately decided that Uber is not a group of 30,000 self-employed drivers. Instead, it is one business with 30,000 employee drivers.
Uber’s response to the ruling
In response to the denial of its appeal, Uber UK acting general manager Tom Elvidge stated:
“Almost all taxi and private hire drivers have been self-employed for decades, long before our app existed. The main reason why drivers use Uber is because they value the freedom to choose if, when and where they drive and so we intend to appeal. The tribunal relies on the assertion that drivers are required to take 80% of trips sent to them when logged into the app. As drivers who use Uber know, this has never been the case in the UK. Over the last year we have made a number of changes to our app to give drivers even more control. We’ve also invested in things like access to illness and injury cover.”
Thus the adjudication of the future of Uber’s business model continues. It remains to be seen how the setback the company suffered in the UK will affect its business process going forward in that country and also the U.S.
The attorneys of the Gilbert Firm are committed to seeing your case through to a beneficial outcome. We understand the uncertainty that can arise when employees and their employers clash over wages and other compensatory issues. From our law offices in Nashville, Jackson, Memphis, Chattanooga, and Knoxville, we are prepared to use the necessary resources to fight on your behalf successfully. To work with a Tennessee employment attorney like Jonathan Bobbitt or Justin Gilbert, please call 888-996-9731, or fill out our contact form.