Uber is certainly no stranger to Canadian court rooms. In its
latest tussle, a $400 million dollar proposed class action in
Ontario by Uber "drivers" alleging they are employees of
Uber and entitled to the benefits of the Employment Standards
Act, 2000, Uber succeeded on its pre-certification
motion to stay the proposed class action in favour of arbitration
in the Netherlands. The proposed class action (with a
class of approximately 20,000 drivers) was motivated by driver pay
cuts in late 2016 which are alleged to be upwards of
30-40%.
This decision is one in an increasingly long line of cases that
underscores the limited jurisdiction of the courts to disregard
agreements to arbitrate absent a statutory exception. Despite
involving a potential employment relationship between the parties,
this case is no different and highlights the modern view that
arbitration clauses are presumptively valid and enforceable.