✒ In this landmark ruling, the UK Supreme Court had unanimously found against Uber.
It was held that Uber’s drivers are its “workers” — a classification that falls between that of the self-employed and full employees — and are entitled to holiday pay, minimum wage, sick leave and pension. Also, Supreme Court ruled that drivers are working for Uber for the entire period that they are logged into its app, and not just while carrying out trips.
Such ruling on worker recognition is a major blow to Uber’s business model, and the ripples from this decision is likely to travel far. Others gig economy companies will now have to review their practices and the associated risks urgently.
Would be interesting to see how Uber shift its business model to cope with the decision of this case, and how other companies in the gig economy ecosystem react.
For example, as Deliveroo is contemplating an IPO this year, it may have to expand the risk factors section in its prospectus outlining potential litigations and labour policy changes.