Employees or not?

When was the last time you took an Uber?

The primary reason you did was probably because a ride was available at an acceptable, agreed price, and probably cheaper than the established taxi companies. That is the free market in operation. If I have a product or service that I believe there is a demand for, I should be allowed to test my theory – in the marketplace.

Not so the Employment Court. The Chief Judge recently ruled on a claim brought by a couple of Uber drivers, claiming that they were employees, and not independent contractors. The judge decided – on the specific facts before her – that this group were employees.

That means they are entitled to the minimum wage for hours worked, sick leave, bereavement leave, holiday pay, and so forth and so on. Uber have said they will appeal this decision.

Firstly the Court has always ruled on this issue. It’s common for employers to try and get around employment law by calling certain workers independent contractors. Apart from some cost savings, the huge advantage is the ability to terminate the contract with or without notice, and with no fear of a personal grievance.

Back to the Uber drivers. They freely made a choice to use their vehicle to try and earn some additional income, because they needed that extra income. With limited options, they used what assets they had, such as a smaller older car, and what time they had, to earn a lawful living.

So if the next time you take an Uber and the price has significantly gone up, you will know that the appeal has failed, and Uber drivers are now employees.