Uber Drivers deemed employees by the Court of Appeal

In late August, the Court of Appeal determined the relationship between Uber and their drivers are one of an employment nature.

The Court tested aspects of the individual agreements Uber drivers sign, against the reality of the working relationship. Drawing on guidance from the Supreme Court in Bryson v Three Foot Six, the Court held that Uber was “window dressing” the agreements in an effort to navigate away from their drivers being employees, and thus holding the rights of an employee. Such rights include holiday pay, the right to raise a personal grievance and the right to earn the minimum wage.

When determining the employment relationship, the Court looked to the real nature of the agreement, this included:

• All relevant matters relating to the relationship, including the contractual matrix;
• The mutual intention of the parties;
• The amount of control exerted over the individual by the business;
• How integrated the person is within the business; and
• The economic reality as to whether the person is in business for their own account (Fundamental Test).

This decision underscores the complexity of determining employment status and shows there are a number of factors to be considered by employers or business owners when engaging with independent contractors. Ultimately, the outcome will depend on the facts of each individual case, however, this recent decision by the Court shows how imperative it is to correctly define your employment relationships.

If you have any queries around independent contractors or employees, please get in touch with Kimberly Jarvis, Maddy McKenzie, or Ella Anderson-Cahill from our Employment team.

 

Written by

Alex Stoddart

Law Clerk