What do you need to know about the Uber Employment Tribunal Case and how will this affect employment rights?
In a landmark decision, an Employment Tribunal has held that Uber, popular smart-phone taxi app, must treat its drivers as 'workers' opposed to self-employed. This gives Uber drivers a range of employment rights whilst placing obligations on Uber to uphold these. However, this case is likely to have wide reaching implications. This blog will look at the key facts of the Uber case and tell you what you need to know.
The Case
Uber had always maintained that their drivers were self employed. They simply provided technology that connected these self-employed drivers to passengers. This meant that Uber did not need to provide their drivers with employment benefits or rights.
However, some of Uber's own drivers launched an Employment Tribunal case against them claiming that they were 'workers' under the Employment Rights Act 1996 (as well as various other pieces of legislation) and therefore entitled to various rights.
The Tribunal decided that Uber drivers were in fact 'workers'. There were two key reasons for this decision.
The first was the nature of Uber's business. Uber claimed that they were a technology firm linking self-employed drivers and passengers. However the Tribunal believed that Uber was a taxi service, and therefore employed drivers.
The second was the degree of control Uber had over its drivers. Uber fixed fares, handled passenger complaints and carried out performance reviews on drivers. The Tribunal held that this level of control was so great that drivers could not be self-employed.
The Result
Uber drivers are now considered 'workers' and gain key employment rights, for example: paid annual leave; a maximum 48 hours working week and the national minimum wage. All of which Uber will have to finance and uphold.
However, it is important to remember that 'workers' are not 'employees' under employment legislation, and they do no have all of the rights employees have (the right to claim unfair dismissal, statutory redundancy payment and more).
The Impact
At the moment, the Tribunal decision is not binding on other courts and tribunals. However, given the huge impact this decision will have on Uber, it is likely that they will appeal this decision. If the appeal goes to the Employment Appeal Tribunal then any decision reached will be binding.
In the meantime, it is crucial that you consider your own employment status (i.e. self-employed, worker, employee) or the status of individuals you pay to carry out services. It is not enough for companies to say that any individuals that provide services to them do so on the basis that they are self-employed. Tribunals will look beyond labels that are placed on relationships - to establish the actual facts and make a judgement on those.
For individuals this could mean you have more employment rights than you currently have. For employers, it could mean that you have more financial obligations to people working for you.
The case is of particular importance for anyone involved in the 'gig economy' a growing trend that sees self-employed people gaining an income through a series of short, small, temporary jobs. Individuals working in this field could now seek to challenge their employment status through the Tribunals.
