Uber Big Problem For Gig Economy

After criticism of the working practices at Sports Direct and an HMRC investigation into low pay courier firm, Hermes, the latest blow to the gig-economy comes from the Employment Tribunal decision this afternoon that Uber taxi drivers are actually "workers", with rights, rather than being unprotected self-employed contractors.

The Uber drivers argued in particular that, as workers, they are entitled to the National Minimum Wage and to paid holiday.  Uber had argued that it was purely a technology company and not a transport business and that rather than contracting with the drivers, the contractual relationship was actually between the passenger and the driver. 

The Employment Tribunal rejected this completely.  It found that Uber's written terms did 'not correspond with practical reality'; highlighting that courts will always assess a working relationship based on what happens on the ground, rather than what is recorded in writing.