Uber has been dealt one other blow in Britain after an employment tribunal affirmed Friday that its drivers ought to be handled as employees and never contractors.
The startup had been looking for to overturn a 2016 determination that meant its drivers within the nation would qualify for the minimal wage, paid day off and different perks.
It is the newest in a collection of stumbles for the corporate in Britain.
London, considered one of its most essential markets, declined to resume the agency’s license in September. Uber has been allowed to maintain working within the metropolis whereas it appeals the choice.
Friday’s courtroom ruling might show to be extra essential in the long term, nonetheless.
Uber has argued in markets world wide that its drivers ought to be handled as contractors, a classification that usually means fewer advantages and fewer job safety.
In Britain, the U.S. agency’s place was contested by GMB, a union for skilled drivers. The union hailed the ruling as a “landmark victory” and “vindication” for its members.
Uber mentioned it might launch one other attraction within the case, which might find yourself within the nation’s Supreme Court docket.
“Virtually all taxi and personal rent drivers have been self-employed for many years, lengthy earlier than our app existed,” Uber mentioned in an announcement. “The principle cause why drivers use Uber is as a result of they worth the liberty to decide on if, when and the place they drive.”
U.Ok. employment legal professionals mentioned the choice might have enormous implications for different firms working inside the so-called gig financial system.
“The cloud of uncertainty looming over the gig financial system has undoubtedly made new companies within the U.Ok. cautious about constructing a enterprise mannequin round a self-employed ad-hoc workforce,” mentioned Nick Elwell-Sutton, a companion at legislation agency Clyde & Co.
— Alanna Petroff contributed reporting.
CNNMoney (London) First printed November 10, 2017: 7:11 AM ET
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