UK Supreme Court Says Uber Drivers are Not Independent Contractors
upstart writes in with an IRC submission for Runaway1956:
UK Supreme Court says Uber drivers are not independent contractors:
The Supreme Court of the United Kingdom has ruled that Uber drivers are legally workers, not self-employed contractors as Uber has argued in courts around the world. The ruling means that drivers in Britain and Northern Ireland are eligible for additional benefits and protections, including a minimum wage.
Uber claims that it merely acts as a technology provider and broker between independent drivers and their customers-much as eBay facilitates sales between buyers and sellers. In Uber's view, this means that it doesn't owe its drivers benefits like unemployment insurance, doesn't need to reimburse drivers for their costs, and isn't bound by minimum wage and overtime rules. Uber emphasizes that its drivers are free to decide when, where, and how much they work.
But critics point out that Uber exerts a lot more control over its drivers-and over the driver-passenger relationship-than a conventional platform like eBay or Airbnb. Uber sets fares, collects payments from customers, deducts its own fee, and remits the remainder to the driver. It requires drivers to accept a large majority of the rides they are offered. It handles customer complaints and kicks drivers off the platform if their average rating falls too low.
So the UK Supreme Court ruled Friday that Uber drivers are legally Uber workers, not independent business owners who happen to get most of their business from Uber.
"Drivers are in a position of subordination and dependency in relation to Uber such that they have little or no ability to improve their economic position through professional or entrepreneurial skill," said Lord George Leggatt, one of the justices of the Supreme Court, as he handed down the ruling.
Additional coverage at bbc.co.uk
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