Uber has lost its appeal against an employment tribunal ruling in the U.K. that said it has to give its drivers workers’ benefits, such as a the minimum wage and statutory holiday pay.
Companies such as Uber, Deliveroo, and TaskRabbit view those selling their services over the platform as independent contractors who do not get to enjoy the benefits that proper employees have. This is indeed a lynchpin of the platforms’ business models, as it reduces their costs.
However, on Friday the Employment Appeal Tribunal (EAT) in London confirmed the Employment Tribunal’s September 2016 that this approach simply doesn’t fly. The appellate tribunal said Uber’s drivers are workers, so they get workers’ benefits.
Uber said it will appeal the ruling.