Uber Drivers Aren’t Independent Contractors, U.Okay. Tribunal Rules

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Yaseen Aslam, left, and James Farrar challenged Uber in Britain on behalf of a bunch of 19 drivers, arguing that the corporate had denied them fundamental protections by classifying them as self-employed.

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Carl Court/Getty Images

LONDON — Uber suffered one other blow on Friday to its operations in London — its greatest market exterior the United States — when an employment tribunal rejected the corporate’s argument that its drivers have been unbiased contractors.

The resolution, which affirmed a ruling made final 12 months, means Uber must guarantee its drivers are paid a minimal wage and entitled to time without work, casting doubt on the hiring mannequin utilized by Uber and by different companies within the so-called gig financial system that depend on staff who should not have a proper contract as everlasting staff.

Companies argue that such a system will increase the flexibleness for each staff and employers within the fashionable financial system, however critics say it’s exploitative and deprives staff of key advantages like unemployment insurance coverage.

For Uber, the ruling is the second hit to its enterprise in London in current months. In September, town’s transport authority issued a stunning resolution to bar the ride-hailing service from working within the British capital. Uber is interesting that ruling, which mentioned the corporate was not “fit and proper” to function within the metropolis. It can proceed providing its companies till a remaining ruling is made.

In the case earlier than the employment tribunal on Friday, two Uber drivers, James Farrar and Yaseen Aslam, had challenged the corporate on behalf of a bunch of 19 drivers, saying that the service had denied them fundamental protections by classifying them as self-employed. Uber relied on an argument it has used repeatedly around the globe: Its drivers have been unbiased contractors.

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In a press release following the ruling, Uber’s performing head in Britain, Tom Elvidge, mentioned the corporate would enchantment the choice. Once it does so, the case can be heard by the Court of Appeal.It might ultimately be referred to Britain’s Supreme Court.

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