RIGHTS AT THE RANK Not All Drivers Are on the Same Ride
In recent years, the gig economy has transformed the way services are delivered, from food delivery to ride-hailing apps. However, this shift has sparked significant legal debate about the employment status of gig economy workers—are they self-employed contractors, workers entitled to certain rights, or even employees?
Under UK law, individuals providing services may fall into one of three categories: employees, workers, or self-employed contractors. Each category brings differing levels of rights and protections. Employees benefit from the full range of employment rights, such as unfair dismissal protection and redundancy pay. Workers, while not entitled to all employee rights, are eligible for core protections, including the minimum wage, holiday pay and protection from discrimination. Self-employed contractors, on the other hand, have little statutory protection, relying instead on the terms of their contracts.
“Whilst the judgment will be welcome relief for gig-economy focussed businesses who will likely have felt all status tests are heading in one direction…”
The gig economy has challenged these distinctions. Businesses often label individuals as self-employed contractors to retain flexibility and reduce costs. However, a growing body of case law disputes this classification, particularly in the ride-hailing sector. Landmark cases, such as Uber BV v Aslam and Addison Lee Ltd v Lange, have found drivers to be "workers" entitled to basic employment rights. Courts have frequently focused on the degree of control exercised by platforms and the economic dependency of drivers, undermining claims of genuine self-employment.
Taxi drivers have become central to this debate due to the number of apps seeking to challenge the status quo of black cabs and taxi ranks. Ride-hailing apps impose strict performance monitoring, pricing, and shift availability requirements, suggesting a level of subordination inconsistent with self-employment. The high-profile nature of these cases and their financial implications for platforms like Uber have fuelled a flurry of litigation, creating a ripple effect across the gig economy.
The latest of these high-profile claims has recently been heard by the Employment Appeal Tribunal, with the conclusion that drivers using the “Gettaxi” app were genuinely self-employed, and not workers. This flies in the face of the prevailing wind which has seen most claims for worker status being successful.
The drivers using the Gettaxi app are usually traditional “black cab” drivers who use the app to supplement their usual service. The EAT focussed on the rights of the drivers to work on their own account as drivers (as opposed to Uber drivers) and the fact that the drivers were free to decide their own routes as opposed to following a set sat nav route.
Whilst the judgment will be welcome relief for gig-economy focussed businesses who will likely have felt all status tests are heading in one direction, there is no doubt that status cases continue to be treated on a genuine case-by-case basis and without updated legislation, there will continue to be much scrutiny on decisions relating to status.
If you engage gig-economy workers and want to test whether the correct status is being applied, get in touch to discuss our bespoke approach.