A group of Uber drivers is entitled to workers’ rights such as the minimum wage, and the British Supreme Court ruled on Friday in a knuckle for the ride service that could have consequences for millions of others in the gig economy.
In a case led by two managers, a London labor court ruled in 2016 that they granted rights such as paid holidays and rest breaks.
Uber executives are currently considered a stand-alone business, which means that by law, they offer only minimal protection, a status that the business in Silicon Valley seeks to maintain through ongoing court action.
“The Supreme Court unanimously dismissed Uber’s appeal,” Judge George Leggatt said Friday.
“The legislation is intended to provide certain protections to vulnerable individuals who have little or no say in their pay and working conditions.”
Uber said the ruling did not apply to all of its current 60,000 drivers in Britain, including 45,000 in London, one of its key global markets.
“We respect the court’s ruling that focused on a small number of drivers using the Uber app in 2016,” said Jamie Heywood, the Northern and Eastern European boss. “We are committed to doing more and will now converse with every active manager in the UK to understand the changes they intend to see.”
The gig economy, where people tend to work-for-work for one or more companies, has been criticized by unions as being exploitative, while companies believe that many of those who work in it enjoy the flexibility.
It could take so many months before the details of Friday’s ruling are worked out if a further hearing on the employment tribunal is needed to practically sort through the amounts owed to managers.
Law firm Leigh Day says eligible drivers can be reimbursed an average of £ 12,000 ($ 16,780).