U.K. Supreme Court rules Uber drivers are 'workers' entitled to minimum wage, benefits


Britain's Supreme Court ruled unanimously Friday that drivers for the ride-hailing service Uber are company "workers," not independent contractors, and are therefore entitled to the national minimum wage, paid annual leave, and other benefits. The court also agreed with lower courts that Uber drivers are on the clock when they are logged in to the app, ready to accept passengers, not — as Uber had argued — only when they are actually driving people to their destination.
Uber has 65,000 active drivers in the U.K., The Associated Press reports, and the ruling threatens to upend its entire business model in the country. "Questions still remain about how the new classification will work, and how it affects gig economy workers who work not only for Uber, but also for other competing apps," BBC News reports. This was Uber's final appeal, after losing in three lower tribunals starting in 2016.
"I think it's a massive achievement in a way that we were able to stand up against a giant," said Yaseen Aslam, president of the App Drivers & Couriers Union (ADCU) and one of the original plaintiffs in the case. Another original litigant, ADCU general secretary James Farrar, called the ruling "a win-win-win for drivers, passengers and cities," because "Uber now has the correct economic incentives not to oversupply the market with too many vehicles and too many drivers." Uber shares were down more than 3 percent in premarket trading in New York, AP notes.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
How will the new Repayment Assistance Plan for student loans work?
the explainer The Repayment Assistance Plan (RAP) will replace existing income-driven repayment plans
-
In the Spotlight Venezuelan President Nicolás Maduro has been at odds with US forces
-
Music reviews: Ethel Cain, Amaarae, and The Black Keys
Feature "Willoughby Tucker, I'll Always Love You," "Black Star," and "No Rain, No Flowers"
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages