The Employment Appeal tribunal this afternoon has ruled that Uber drivers are ‘workers’ and not ‘employees’. This is an issue that often confuses employers but it is an important difference to note.
Whereas ‘employees’ enjoy full employment rights, ‘workers’ have the benefit of limited employment rights as follows:
- 6 weeks paid annual leave each year
- The national minimum wage (and national living wage)
- Protection under Whistleblowing legislation
- A maximum 48-hour average working week and rest breaks
As Uber drivers are not employees, the following are some of the employment rights which they do not have the benefit of:
- The right to a statutory redundancy payment
- The benefit of an implied term in employment contracts known as ‘trust and confidence’
- The ability to claim unfair dismissal
- Any protection under TUPE (Transfer of a business) should Uber decide to sell its’ business.
It is likely that the above decision will be appealed and we will keep you updated on developments.
However, for now, the tribunal’s decision above increases the chance of other ‘gig economy companies’ facing claims that their ‘contractors’ (often regarded as self-employed) have ‘worker’ status.
For further advice on the status of your staff, please contact us