Uber Face Tribunal Over Equal Employment Rights

Uber employees are taking their employer to tribunal in the hope of improving their contracts so that the benefits they receive are equal to that of other Uber workers. This would entitle them to receive employment bonuses such as holiday pay, sick pay and pension contributions. Currently all self-employed Uber drivers are considered self-employed contractors.

Uber has made itself a major name in the world of transport thanks in no small part to the hard-wok of these drivers who feel that their contribution entitles them to the same benefits, and certainly the minimum wage payments, that other Uber employees receive.

The claimants’ argument rests on the assertion that the unfair terms and conditions in their contract justifies their claim. This tribunal hearing is so significant that it has been described as “the case of the year in UK employment law” as noted by The Guardian, which was instrumental in investigating the similar legal claims made by Hermes workers earlier this year.

Companies choosing to hire self-employed workers without offering contracts that make them full employees is a practice commonly associated with ‘gig economy’ employment, in which flexible workers are paid a low wage with additional payments only given in accordance with the work they produce.

The nineteen drivers bringing their claim to tribunal are just a fraction of the 30,000 strong Uber workforce that the Dutch transport company employs in London alone. Uber insists the vast majority of its workers are happy with the existing working arrangement as it allows self-employed workers to be their own boss and easily work other positions concurrently.

Uber also asserts that any UK claim should be considered void as all tribunal cases against the business needs to be heard by tribunal courts in the Netherlands where Uber headquarters are based. However, this notion, along with many other aspects of the case, is being challenged by the GMB union which is taking a keen interest in the developing events in order to encourage and represent UK workers of the gig economy.

National secretary of the GMB, Justin Bowden, has spoken of the Union’s position: “The GMB is proud to be supporting this claim against Uber, which we see as challenging a growing and pernicious practice by companies – that of wrongly claiming workers are self-employed”.

“Uber drivers face very difficult working conditions and, with cuts to fares, we believe that some of our members are taking home less than the national minimum wage when you take into account the costs of running a car. We are also concerned that some drivers are working longer and longer hours in order to make ends meet and are unable to take any paid holiday. We believe that this could pose a safety risk to drivers and the public”.

Uber is not the only firm to come under fire for having unfair work regulations for self-employed drivers. There are no less than four businesses currently seeking similar tribunal action, including eCourier, Excel, Addison Lee and City Sprint. These cases, which all share the common claim of low pay and unfair self-employment terms, will be heard in late 2016/early 2017.

The result of the Uber tribunal will likely be a probable pre-cursor to the ruling of these other hearings as one ruling is likely to evoke clear expectations for all self-employed delivery and transport tribunal hearings to follow.

The Office for National Statistics has released figures showing that from the 126,000 new jobs created in Britain since May 2016, 83% of them require self-employment, meaning that a sixth of UK workers are now self employed.

With such a growing reliance on self employment, it makes sense for self-employment legislation to be properly outlined so no organisation can take advantage of its workers. Birkenhead MP Frank Field recently urged week Theresa May to undertake a review of self-employment law following the Guardian’s controversial Hermes investigation findings.