Uber drivers must be treated as workers rather than self-employed, the UK’s Supreme Court has ruled. The decision could mean thousands of Uber drivers are set to be entitled to minimum wage and holiday pay.
The ruling could leave the ride-hailing app facing a hefty compensation bill, and have wider consequences for the gig economy.
In a long-running legal battle, Uber had appealed to the Supreme Court after losing three earlier rounds. A group of drivers had launched the claim to contest that they should be classified as workers, rather than independent third-party contractors, which means they are entitled to all the basic employment protections under the UK law. A key point in the Supreme Court’s ruling is that Uber has to consider its drivers “workers” from the time they log on to the app, until they log off.
Uber’s share price fell 1 percent on Wall Street’s open as investors grappled with what impact the London ruling could have on the firm’s business model.
