The Verdict On UK’s Uber Employee Classification Case Is “Groundbreaking”

November 23, 2016 Robert Sheen Affordable Care Act, Regulations

Uber has proven to be both a gift and a curse over the years. While the mobile car service app appears to have cornered a market previously held by more traditional companies, it has allowed efficiency and accessibility to everyday commuters while also opening an untapped job market. Those benefits have not been without a fair share of burdens, especially since the Affordable Care Act came fully into effect.

In the United States, several states, including California, have seen Uber disputes over employee classifications, given the stretches of time where drivers spent over 30 hours working within a week, the result of which may mean that they are entitled to health care benefits under the ACA.

It doesn’t stop there, as other benefits like rest, holidays, and occupational expenses have raised questions about drivers’ rights, which have been raised in lawsuits. The U.S. is arguably still figuring it all out on a case-by-case basis. The UK, however, has come to a firm decision on the matter and it will change the gig economy as we know it, at least in the UK.

The BBC reports that the Uber case in the UK has resulted in drivers being deemed as employees of Uber and not self-employed. What does that mean? Health care, holidays, minimum wage (nationally), and other benefits will now be offered to drivers. This applies to over 400,000 drivers employed by Uber across England and Wales alone.

While Uber is based in San Francisco, the company argued that even in the UK, drivers are self-employed and has every intent to appeal this decision. However, the courts ruled that Uber has voluntarily “twisted” words around in documents, as if to rewrite rules to work their favor.

An attorney for the two drivers in the lawsuit, Nigel Mackay of the Leigh Day law firm, described the ruling as groundbreaking. “It will impact not just on the thousands of Uber drivers working in this country, but on all workers in the so-called gig economy whose employers wrongly classify them as self-employed and deny them the rights to which they are entitled,” Mackay expressed.

While the blanket decision was based around two instances, some “Uber drivers are pleased, while others concerned. Drivers whose expenses have led to a net income below minimum wage are happy to see progress, while some question how Uber’s business practices will come into play, especially after being “self-employed” for so long. The success of this decision will take a while to fully play out, but it certainly is a situation that should show on the radar of the United States, as the country is still divided over employee classifications across state lines.

To view the BBC article, click here.

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