Uber Drivers Are Uber Employees, Not Self-Employed Workers
Uber Drivers are workers from the moment they log on, to the moment they log off, Rules Supreme Court.
The decision could mean that all drivers are entitled to minimum wage and holiday pay. It’s a legal battle that Uber has been fighting since 2016 when former Uber drivers James Farrar and Yaseen Aslam argued they were working for Uber, whilst Uber say they are self-employed.
The court considered several elements in its judgement:
Uber set the fare which meant that they dictated how much drivers could earn
Uber set the contract terms and drivers had no say in them
Request for rides is constrained by Uber who can penalise drivers if they reject too many rides
Uber monitors a driver’s service through the star rating and has the capacity to terminate the relationship if after repeated warnings this does not improve
Looking at these and other factors, the court determined that drivers were in a position of subordination to Uber where the only way they could increase their earnings would be to work longer hours.
Going forward, it is expected that Uber fare prices will increase to cover all their extra costs. It is highly likely that Revenue & Customs (HMRC) will now classify Uber as a transport provided therefore Uber would need to pay VAT on fares.