28 October 2016

The Institute of Employment Rights welcomes today's decision by the Central London Employment Tribunal that Uber drivers should be legally classified as 'workers', not as 'self employed', thereby entitling those working for the taxi app to fundamental employment rights they did not enjoy before.

GMB took two test cases to tribunal, those of James Farrar and Yaseen Aslam, on 20 July 2016 to argue that Uber exerts significant control over its drivers, such as deducting payment when fares complain, and as such the company is not just a technology used by self-employed drivers, but is a taxi firm that directs its workers.

Today, the tribunal agreed with GMB that Uber drivers meet the classifications for the legal definition of a 'worker' thereby entitling them to rights such as minimum wage, regular breaks, holiday and sick pay.

All of the over 30,000 Uber drivers in the UK are currently not entitled to any workers' rights at all, with GMB finding that one member working exclusively for the company earned just £5.03 per hour in August, well below the national minimum wage of £7.20.

"Uber drivers and thousands of others caught in the bogus self-employment trap will now enjoy the same rights as employees. This outcome will be good for passengers too. Properly rewarded drivers are the same side of the coin as drivers who are properly licensed and driving well-maintained and insured vehicles," Legal Director of GMB Maria Ludkin said, warning other companies that the union is ready to take them to court if they engage in similar practices to Uber.

Nigel Mackay, Leigh Day employment lawyer, said: "This is a ground-breaking decision. 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."

The Institute of Employment Rights recommends a review of the legal definition of 'worker' to ensure those misclassified as self employed, or who are in otherwise precarious roles such as agency work or on zero-hours contracts, are encompassed by fundamental workers' rights.

This proposal is one of 25 policies within our Manifesto for Labour Law, which has now been adopted by the Labour Party, who are looking into its implementation.

Click here to read more about the Manifesto for Labour Law and purchase your copy from just £10