UK: Uber Drivers are Employees not Individual Entrepreneurs

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Uber drivers in the UK will now get better treatment from Uber thanks to the courts ruling the company can’t as robustly exploit their drivers. The way drivers get gigs and subsequently paid by the company structurally mean the company has control all aspects of the process, which means the drivers are workers since they actually have no control over key aspects of the job. This is a blow against Uber which skirts the laws in multiple countries and this decision in the UK will resonant throughout the entire gig economy.

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.

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