A ruling is expected later on the employment status of Uber drivers, possibly having wide-ranging implications for the app technology sector.
The case was taken to the courts by employment union GMB after two Uber drivers said they did not have basic employment rights. Uber’s 40,000 UK drivers are currently self-employed, but some drivers argue that the degree of control the app holds over their actions means they are employees – and they should be entitled to workers’ rights.
The result is expected to have a large effect on Uber’s business model. If GMB’s case succeeds, Uber will have to pay its drivers the minimum wage and paid holiday.
Uber argues that it is not an employer, it is a technology platform connecting supply with demand and that most of its drivers use the service because of the benefits self-employment offers.
Jo Bertram, regional general manager for Uber UK, said:
“The main reason people choose to partner with Uber is so they can become their own boss, pick their own hours and work completely flexibly. In fact two-thirds of new partner-drivers joining the Uber platform have been referred by another partner.”
A ruling against Uber will likely affect the way their business functions, and may include the need to raise prices.
Luke Bowery, a partner at Burges Salmon, told the BBC:
“Uber could pass the costs on to customers through higher fares, but that would “disrupt Uber’s ability to offer a flexible and responsive service to its customers – potentially hitting at the heart of service delivery, as well as its profit margins.”
The decision may also have a wider impact on the range of new platform apps connecting self-employed workers with demand, including Addison Lee, Deliveroo and Courier. Next month, a similar case will go before an employment tribunal involving courier firm City Sprint.