A recent UK decision could have major repercussions for firms that have a large workforce of self-employed associates.
A recent UK ruling which confirms Uber drivers are employees and not independent contractors could have major repercussion for employers taking advantage of the gig economy.
The Central London Employment Tribunal's decision means more than 40,000 British Uber drivers will qualify for the national minimum wage as well as holiday pay, pensions and other perks.
The ground-breaking case was brought by two drivers - James Farrar and Yaseen Aslam – on behalf of a wider group who argued they were employees of the San-Francisco firm and not self-employed, as Uber insisted. Ultimately, the judges agreed with the drivers.
“The notion that Uber in London is a mosaic of 30,000 small businesses linked by a common ‘platform’ is to our minds faintly ridiculous,” the judges said. “Drivers do not and cannot negotiate with passengers … They are offered and accept trips strictly on Uber’s terms.”
Experts claim the ruling will have wider implications in the UK, where companies with large self-employment workforces could now face increased scrutiny and legal challenges.
“This is a ground-breaking decision,” said Nigel Mackay, from the employment team at law firm Leigh Day, which represented the drivers. “It will impact not just on the thousands of Uber drivers working in this country, but on all workers in the so-called gig economy whose employers wrongly classify them as self-employed and deny them the rights to which they are entitled.”
Already, the UK’s largest union – Unite – has established a new unit dedicated to investigating cases of unfair self-employment. While Uber is appealing the decision, if the ruling stands, it could be open to claims from its entire British workforce.
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The Central London Employment Tribunal's decision means more than 40,000 British Uber drivers will qualify for the national minimum wage as well as holiday pay, pensions and other perks.
The ground-breaking case was brought by two drivers - James Farrar and Yaseen Aslam – on behalf of a wider group who argued they were employees of the San-Francisco firm and not self-employed, as Uber insisted. Ultimately, the judges agreed with the drivers.
“The notion that Uber in London is a mosaic of 30,000 small businesses linked by a common ‘platform’ is to our minds faintly ridiculous,” the judges said. “Drivers do not and cannot negotiate with passengers … They are offered and accept trips strictly on Uber’s terms.”
Experts claim the ruling will have wider implications in the UK, where companies with large self-employment workforces could now face increased scrutiny and legal challenges.
“This is a ground-breaking decision,” said Nigel Mackay, from the employment team at law firm Leigh Day, which represented the drivers. “It will impact not just on the thousands of Uber drivers working in this country, but on all workers in the so-called gig economy whose employers wrongly classify them as self-employed and deny them the rights to which they are entitled.”
Already, the UK’s largest union – Unite – has established a new unit dedicated to investigating cases of unfair self-employment. While Uber is appealing the decision, if the ruling stands, it could be open to claims from its entire British workforce.
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