Supreme Court Ruling: Uber Worker Rights
Over the past few years, the transport app giant Uber have been in and out of Employment Tribunals over the continuously debated rights of their workers.
Recently, after losing an appeal to the Supreme Court, the landmark ruling has seen that thousands of Uber drivers will be entitled to holiday pay and minimum wage - leading to wider consequences for the gig economy.
Uber must now face a back-log of Employment Tribunal claims, back payments, and holiday pay claims. They are also likely to face large bills from HMRC for unpaid national minimum wage.
“This is a win-win-win for drivers, passengers and cities. It means Uber now has the correct economic incentives not to oversupply the market with too many vehicles and too many drivers…” - James Farrar (General Secretary of ADCU)
Resultantly, Uber drivers are now classed as workers and gain the employment rights which come with it that they didn’t have before - this mainly includes holiday pay, national minimum wage rates, whistleblowing protection and sick pay.
This landmark ruling should serve as a reminder to all organisations that employment status isn’t always black and white. Hiring an individual under the wrong status can be devastating financially and reputationally.
This ruling also highlights an important fact for organisations that hire from the gig economy: simply labelling an individual as self-employed doesn't make it legally binding.
It is worth noting that while many gig economy workers strive for greater protection and employment rights, organisations shouldn’t assume that all self-employed people want them; many still wish to remain independent. This being said, this doesn’t mean they aren’t entitled to the rights the law mandates they are eligible for.
From this ruling, other organisations with flexible employment models should review their own working practices and adapt them to avoid this kind of exposure to tribunal claims.
At Amica HR, we have a wealth of experience in helping businesses determine employment status. If you want to find out how we can work in partnership with you to benefit your business, you can contact a member of the team on 01522 370190 or 0207110 0006 or you can email us at firstname.lastname@example.org .