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Article

28 Oct 2016

Author:
Jeremy Hodges and Jeremy Kahn, Bloomberg

Uber loses U.K. ruling, entitling drivers to minimum wage

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Uber Technologies Inc. lost a lawsuit over pay and vacation time for U.K. drivers…in a ruling that could change how workers are treated in the country’s burgeoning gig economy….The case, brought by two Uber cabbies, is the first against the company in Britain and could have ramifications for more than 40,000 people in the UK…Uber said that while the London ruling only affects two people, it planned to file an appeal…“This judgment acknowledges the central contribution that Uber’s drivers have made to Uber’s success by confirming that its drivers…work for Uber as part of the company’s business," said Nigel Mackay, a lawyer at Leigh Day who represented the drivers ….The decision could have wide-ranging impact for the group of technology companies that connect freelance workers with customers [as it] will potentially open the floodgates for further claims… from thousands of others who work in the gig economy…Uber has faced similar actions too in the U.S [but] has so far been largely successful in arguing that drivers must take their disputes with the company to private arbitration, which makes it more difficult for the drivers to pursue a class action lawsuit against the company…

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