Uber is reconsidering how it treats tens of thousands of Uber drivers in the United Kingdom following the Supreme Court’s ruling that they should be categorized as workers and not independent contractors.
The united decision could deliver a significant loss to the firm’s business model in one of its major markets and shows how drivers claim the paid time off and minimum wage, legal experts said.
According to the Supreme Court, the Uber drivers that proposed the case to an employment panel were not independent contractors as their actions were “very tightly controlled and defined by Uber.” The judge pointed the firm’s control over wages and how it dictates the contractual norms on which drivers perform their jobs.
While the decision’s actual effects are not yet specific, the ruling could change how (UBER) does business in England. The next hurdle is for an employment panel to decide how to compensate a considerable number of claimants. UBER shares fell by 3% premarket in New York.
The case may also set an example to other companies and workers in the broader gig economy, which has prospered during the pandemic due to a steep increase in demand for food and other services.