ARTICLE
29 April 2021

UK Supreme Court States: Driver's Working For Uber Are Employees (Legal Alert 136)

Ai
Andersen in Egypt

Contributor

Andersen in Egypt is offering comprehensive and varied legal and tax services to companies and individuals, in addition to financial advisory services licensed by the Egyptian Financial Regulatory Authority (License No. 47), through our team of 9 partners and more than 70 of the top lawyers and consultants.
Since the inception of Uber, numerous legal questions have arisen with regards to the relationship between the company and its drivers, and whether they can be classified as "employees",...
Worldwide Employment and HR

Since the inception of Uber, numerous legal questions have arisen with regards to the relationship between the company and its drivers, and whether they can be classified as "employees", or merely independent contractors. Under the later classification, drivers could suffer substantially since they would be deprived from the benefits stipulated under the Labor Law. Accordingly, disputes between drivers and Uber have arisen in many countries for instance, in February 2021, the UK Supreme unanimously upheld that Uber drivers are to be classified as "employees" under local labor law, and not, independent contractors. This ruling was of course issued after Uber being defeated at every stage of its appeal before numerous Employment Tribunals.

The UK Supreme Court considered several elements in its judgment which can be summarized in the following points:

  • Uber is responsible for setting the fares for their services, meaning that they dictated how much drivers could earn
  • Uber sets the contract terms and drivers have no say in them
  • Request for rides are constrained by Uber who can penalize drivers if they reject too many rides
  • Uber monitors a driver's service through the star rating mechanism and has the capacity to terminate the relationship if after repeated warnings service does not improve
  • Uber restricts communication between the passenger and driver to the minimum necessary to carry out the trip

Further, the reclassification of the Supreme Court and several courts around the world is considered a victory for this massive group of workers, since the “freelance” system used by Uber is finally facing criticism, particularly by Britain's Trade Union which describes it as an “exploitative system,". This was expanded upon by Sir George Legate, one of the Supreme Court judges, who stated that: “The Supreme Court unanimously dismisses Uber's appeal, and that the legislation's purpose is to protect vulnerable workers who have no say in their salaries or working conditions.”

In this regard, the purpose of this article is for the law enforcement authorities in Egypt to reconsider the relationship between ride sharing applications, and their drivers, and particularly to classify them as employees, entitled to the benefits stipulated in the Egyptian Labor Law,

The designation of Uber's drivers as employees, confirms that they are entitled to the benefits stipulated in Egypt's Labor Law, such as the minimum wage, paid holiday, paid sick leave, protection from termination of employment without reason, and distribution of company profits as per Egyptian Labour Law, thus granting this category their right to protection, security and stability, which have long been essential characteristics of any civilized society.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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