Uber’s succession signposts end to false self-employment claims

by Kate Hindmarch, partner in Employment Law at Langleys Solicitors

“The momentous move that Uber has made in granting its workers access to basic worker rights will be a real turning point for the nearly five million UK workers that are engaged in the ‘gig economy’.

“One of Uber’s leading arguments suggested that its self-employed contracts offered workers more freedom and flexibility in their work life. The Supreme Court, however, noted that in reality Uber drivers actually had limited control over a large amount of their employment agreement, including not having the ability to set their own price. The claims of freedom and flexibility echo a large proportion of contracts within the gig economy that will now fall under the scrutiny of the law.

“There’s no doubt that other major businesses within the gig economy will be placing aside funds to be able to cover minimum wage, pension contributions and holiday pay for their workers. The employment tribunal decision that went on to be confirmed by the Supreme Court has shone a spotlight on the practice of creating legally vague arrangements in order to avoid the ‘workers’ classification and in turn avoid liability to these workers.

“Questions have been raised globally over the role of the gig economy, and the extent to which these workers should be afforded the limited rights that employees enjoy. While the UK Supreme Court ruled in favour of protecting gig economy workers, within the US, Uber, along with other gig economy businesses, successfully convinced voters to back Proposition 22, protecting them from being liable to California state employment law.

“Although companies such as Uber continue to use these self-employment tactics in a range of countries, the Supreme Court ruling will likely cause a global ripple effect resulting in an increase in legal cases being brought against Uber and others across the world.”