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The Independent Automotive Aftermarket Federation

The Uber Tribunal Decision


Date: 02-Nov-2016

As you may have heard; an Employment Tribunal has ruled that two drivers who provide services to Uber are 'workers' within the meaning of the Employment Rights Act 1996.

This means they will be entitled to a limited number of employment rights (but not those accruing to 'employees' - which this case was not about).  Amongst other rights, they will be entitled to:

6 weeks' paid annual leave each year;
a maximum 48 hour average working week, and rest breaks;
the national minimum wage (and the national living wage);
protection of the whistle blowing legislation.

However, as they are not employees, they will not:

Be able to claim unfair dismissal;
Have the right to a statutory redundancy payment;
Benefit from the implied term of trust and confidence;
Be protected by TUPE, if Uber sells its business.

Employers should be aware that:

Although this decision is only based on Uber's business model; it increases the chance of other 'gig economy' companies facing claims that their contractors' have worker status;
This tribunal decision is very likely to be appealed; potentially to the Supreme Court.

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