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Uber Drivers Are Company Employees Not Self-Employed Contractors, Rules British Court (arstechnica.com) 230

A British court has ruled that Uber drivers have the same employment rights as other full-time employees in the country, which makes them entitled to a wide array of benefits. Ars Technica reports: The ruling (PDF) means that drivers are now entitled to earn the national minimum wage, holiday pay, sick pay, and other benefits, after the San Francisco-based taxi firm lost a case brought against them by two drivers backed by the GMB union. Uber had argued that it was a tech firm rather than a transport one, and that as its drivers were self-employed contractors it was not obliged to provide the kinds of statutory employment rights full-time workers would expect. According to the GMB, the Central London Employment Tribunal's decision will have ramifications in other industries which rely on casualized labor, and that "similar contracts masquerading as bogus self employment will all be reviewed." In the court's ruling, however, the judges insisted that "the notion that Uber in London is a mosaic of 30,000 small businesses linked by a common 'platform' is to our minds faintly ridiculous. Drivers do not and cannot negotiate with passengers... They are offered and accept trips strictly on Uber's terms." The tribunal panel reserved hefty criticism for the firm, claiming that it had used "fictions," "twisted language," and "brand new terminology" to hoodwink drivers and passengers alike. The GMB meanwhile denied that the majority of Uber drivers enjoyed the "flexibility" of their current contracts.
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Uber Drivers Are Company Employees Not Self-Employed Contractors, Rules British Court

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  • However, this will bring about interesting wage negotiations, in the UK and abroad.
    • by MouseR ( 3264 )

      It's easier to fine one company for operating an illegal taxi system than it is, going against individual drivers.

      • It's easier to fine one company for operating an illegal taxi system than it is, going against individual drivers.

        It's easier to fine one company doing organized crime for organizing crime. Hope they apply the full weight of the law. Would be funny to see those assholes rot in jail for decades.

    • Even with benefits, Uber drivers are still low wage workers in an industry that's going to be replaced by robots in 10 years. I can think of a worse job. Maybe coal miner.
    • ...and a very interesting tax bill for Uber.
    • For those not familiar with the UK context, I'd point out that an Employment Tribunal is a first-line body. I would eat my hat if this decision isn't appealed and the higher courts do have a long track record of overturning Employment Tribunal decisions.

      Don't assume this one is settled.

  • Not just Uber. (Score:5, Insightful)

    by Narcocide ( 102829 ) on Monday October 31, 2016 @08:41PM (#53188779) Homepage

    Dishonest employers fooling employees into thinking they're contractors has actually long been a mainstay of the technical industry. Seriously. If you think you're a contractor and are rejecting my assertion here but you still have to report to an office at a specific time determined by your employer, you're a sucker.

    • Yeah, let's have the government protect us from the the free-market and pre-decide that people aren't smart enough to evaluate opportunities presented by evil businesses.
      • Re:Not just Uber. (Score:4, Insightful)

        by Narcocide ( 102829 ) on Monday October 31, 2016 @08:57PM (#53188859) Homepage

        They're obviously not when their ignorance allows their employer to get away with egregious tax fraud at their own collective expense.

        • Perhaps they're ignorant, perhaps they're not, but the prospect of my peers and my government deciding whether or not I'm smart enough to enter into an economic arrangement of my own free choice is downright scary.
          • by SirSlud ( 67381 )

            Some people are scared of the general will. *shrugs*

        • Ignorant? No. If they were ignorant - nobody would bring this case.
          Desperate ? Yes.

          And when you get people to sign a bad deal out of desperation - that's not a free market, that's the very definition of exploitation, and indeed the government SHOULD prevent that.
          Do you know why ? Because if they don't prevent it for the desperate, then very soon every employer is doing it -and nobody else has a choice anymore. The market has a tendency to settle on the cheapest option - and if exploitation is allowed, then

        • Even if what you said was true, it's the responsibility of individuals to serve as an enforcement arm of the tax collection authority of their own government?
      • Re:Not just Uber. (Score:5, Insightful)

        by rtb61 ( 674572 ) on Monday October 31, 2016 @09:04PM (#53188895) Homepage

        Well, 'er', yeah that's 100% correct. Just like we expect government to protect us from crap doctors or crap lawyers or crap teachers or crap dentists or crap pilots (I have the right to evaluate my own pilot, I don't need some stinking licence to tell me whether or not they can fly a plane properly https://www.google.com.au/sear... [google.com.au], same goes for licences plane mechanics, who needs them, I assume you rate them 0 out of 10 just before you hit the ground ;DDD).

        Yes the government should go after employers who put their employees lives at risk, who do not pay them, who abuse their employees and that includes custodial sentences, fines and putting them out of business permanently.

        • What if the "employees" (contractors) don't want the government going after the businesses they voluntarily entered into a business arrangement with? Who protects their freedoms?
          • Then they can lobby to get the laws changed. But until then they have no more right to ignore statute than does Uber.

          • It's a question of game theory. It doesn't matter too much if one person does it: the corporation offloads some of its taxes onto the employee and avoids things like pension and sick leave obligations, but that may be fine for the individual. That corporation now has a competitive advantage though: they're paying less for staffing because they're cutting corners. Now they are in a position to fire staff and hire them back as contractors and their competitors have to follow suit to remain competitive. Su

        • The kind of libertarianism shown above has no moral problem with indentured servitude, debt slavery, share-cropping or any other form of slavery-by-another-name - because that kind of slavery is apparently freedom to them...

          • Maybe in their worldview the slaves "agreed" to be slaves by not running fast enough from the slavers, or didn't commit suicide but instead "allowed themselves to enter a work contract" by being captured alive.
      • Yeah, let's have the government protect us from the the free-market and pre-decide that people aren't smart enough to evaluate opportunities presented by evil businesses.

        The problem is that the cost is being externalized onto the government and certain other industries. I knew a guy who, in 1999, went to our boss and told him that he couldn't afford to live off his present salary and that he would quit if he didn't get a raise. He was a full-time employee with full benefits. The boss, who was part owner of the company, tricked him into becoming a contractor at a very small raise (about 30%) while stripping him, his wife, and newborn baby of healthcare. So what happens w

        • Every day there are people who make bad decisions about important aspects of their lives. If we were to take each instance as an opportunity for the government to intervene in our lives then then country would be completely devoid of freedoms.
    • Dishonest employers fooling employees into thinking they're contractors has actually long been a mainstay of the technical industry. Seriously. If you think you're a contractor and are rejecting my assertion here but you still have to report to an office at a specific time determined by your employer, you're a sucker.

      For set time periods (defined in N months ahead of time), the contractor model makes sense for both employer and employee. What you're describing, I hope, is the open ended kind of "contractor".

    • you didn't get benefits but you got a good chunk of the pay. A lot of young guys with no need for health insurance I knew loved it because it was free money. When you're 20 there's not a lot of risk.

      When the outsourcing and H-1B abuse started it changed. The employers where no longer splitting the savings from the benefits, they pocketed them all. The H-1Bs worked 60-80 hour work weeks pushing wages down since companies could cut their IT staff by 50-75% thanks to the increased productivity. Wages were
      • by AmiMoJo ( 196126 )

        Is it humanly possible to work 80 hours a week and be 2x as productive as someone working 40 hours a week?

        I'd say it's more like those companies just let the quality decline but didn't care as long as they had someone on hand to cover issues as their arose.

        • Sure it is! Just keep slipping adderall into your Indian "employees" coffee / tea. Keep it up until the have a heart attack, replace them, and repeat. PROFIT! No one will ever catch you, because since their foreigners they won't ever go to the hospital, seek out any medical attention, or even have an autopsy done.
  • by BlueStrat ( 756137 ) on Monday October 31, 2016 @08:47PM (#53188819)

    What they're actually saying is that UK citizens are not free to enter into individual contracts for labor or service, they may only be employees of a business/corporation. Apparently the leaders in the UK must not believe UK citizens are intelligent enough to avoid signing themselves into slavery or something.

    Strat

    • Is there any other way to look at Uber employment?
    • by FlyingGuy ( 989135 ) <flyingguy@gm a i l .com> on Monday October 31, 2016 @09:00PM (#53188875)
      No, what I believe they are saying is that if you work for a company, that collects the money, gives you your jobs, set standards for drivers, etc., then you are an employee of that company.
      You can buy a car, advertise all over the place, have the correct insurance, and you are a one person company. It has been going on for a long time, its called "Car Service".
      • No, what I believe they are saying is that if you work for a company, that collects the money, gives you your jobs, set standards for drivers, etc., then you are an employee of that company.
        You can buy a car, advertise all over the place, have the correct insurance, and you are a one person company. It has been going on for a long time, its called "Car Service".

        Congratulations! We may not agree but you are, so far, the only one who has put forth a reasoned and logical argument rather than unreasoned, knee-jerk reactions and childlike insults.

        So for you it depends on how much of the infrastructure (electronic payment transfers, ride requests, etc) that Uber/Lyft provides drivers?

        If so, how much is too much and how much is too little?

        *This* is the kind of discussion that should be occurring instead of an all out, scorched-Earth effort to ban services like Uber/Lyft.

        • Interesting question. "Car Service" is,at least in the US, have always been one of those business that are not defined as Taxi's. Car Service, have been 1 to many employee's. They are regulated by the limousine side of the Taxi and Limousine as a single payment ( including taxes and tolls ) per destination. But payment is made to the driver, after the trip, and those companies must pay drivers a salary, not a percentage of a fare. If the company has more than 50 employees ( including office, personnel,

          • Interesting question. "Car Service" is,at least in the US, have always been one of those business that are not defined as Taxi's. Car Service, have been 1 to many employee's. They are regulated by the limousine side of the Taxi and Limousine as a single payment ( including taxes and tolls ) per destination. But payment is made to the driver, after the trip, and those companies must pay drivers a salary, not a percentage of a fare. If the company has more than 50 employees ( including office, personnel, mechanics, drivers, etc.) then they have to also provide healthcare

            In nearly every place in the US where taxi and car services operate under regulations, car services are forbidden from picking up street-side passengers (being hailed), and as Uber/Lyft are both "ride-hailing apps" that sort of leaves us back at square one with the government preventing the demand by passengers for a better and more modern alternative to the 19th century taxi company/employed-driver model that currently does not meet demands and expectations from passengers in multiple ways but who are left

        • by serviscope_minor ( 664417 ) on Tuesday November 01, 2016 @03:23AM (#53190357) Journal

          *This* is the kind of discussion that should be occurring instead of an all out, scorched-Earth effort to ban services like Uber/Lyft. It's apparent there is a demand on both ends not being met, both passengers and drivers, for an alternative to traditional taxi/ride services. It needs to be addressed but those who profit from the status quo want it ignored and those who try to fill the demand punished.

          Nope. We already have minicabs here: those are taxis which have few licensing requirements compared to taxis, but can't be hailed and can't use taxi ranks, etc. No one has banned uber, they fit exactly into the exising regulations just fine. There are and have been minicab setups ranging from individuals with a car up to large companies with a whole fleet and an app long before Uber arrived here.

          Except that they're playing silly-buggers with an employment law specifically designed to stop companies playing silly-buggers. They're free to operate here, as long as they stick to the same laws as everyone else. What uber is being "punished" for is not providing for a demand, but doing it without sticking to the laws we have.

    • by whoever57 ( 658626 ) on Monday October 31, 2016 @09:07PM (#53188921) Journal

      The UK has effectively been this way for a while. The reason is that the total taxes paid with an employer/employee arrangement are greater than a contract arrangement would pay. Thus HM Revenue and Customs has been cracking down on "disguised emplyees" for decades, re-defining their employment arrangements as a traditional employment contract.

      HMR&C also crack down on "fake intermediaries", where people set up their own company which employs them (and perhaps their spouse), while that company contracts with the original employer. However, I don't think the tax advantages of this are as great as they used to be.

    • by Uberbah ( 647458 ) on Monday October 31, 2016 @09:33PM (#53189067)

      What they're actually saying is that UK citizens are not free to enter into individual contracts for labor or service, they may only be employees of a business/corporation.

      Nice straw man. What they're saying is that if a company is benefiting from workers as if they are employees....then they're employees and should be treated as such by the company. Not prey on people desperate to make next months rent, so they spend their free time driving for Uber....even if gas and maintenance costs push their annual earnings well below minimum wage.

      Apparently the leaders in the UK must not believe UK citizens are intelligent enough to avoid signing themselves into slavery or something.

      Nobody chooses to be a low paid serf, you Randian nutjob, any more than you've "chosen" not to be a billionaire.

      • Not prey on people desperate to make next months rent, so they spend their free time driving for Uber....even if gas and maintenance costs push their annual earnings well below minimum wage.

        So if they are unable to find a regular job as an employee at government mandated minimum wage then they should not be allowed to earn *anything at all* then? When you're already desperate and starving anything is better than nothing. It's very possible they could make more working a couple of these "abusive" self-employment gigs than they could working a minimum-wage job. Why do you think you have any right to tell others how to make a living if the activity/product is not illegal?

        Nobody chooses to be a low paid serf, you Randian nutjob, any more than you've "chosen" not to be a billionaire.

        I disagree, when we're ta

        • by SirSlud ( 67381 ) on Monday October 31, 2016 @09:58PM (#53189271) Homepage

          I chose not to be a billionaire because I didn't want to put in the kind of effort, dedication, and in these times, stoop as low as one needs to acquire such a fortune.

          Bwhahahaha. That's incredibly cute.

          • Bwhahahaha. That's incredibly cute.

            Hey cute AND accurate, just like me! What's not to love, eh? ;)

            Strat

            • No, cute and moronic.

              • No, cute and moronic.

                ...And we hear from Cap'n Ad-Hom who has nothing at all constructive or factual to add but simply couldn't resist demonstrating his teenage level of maturity for the world to witness in all it's glory!

                Thanks Cap'n!

                Strat

                • No, cute and moronic.

                  ...And we hear from Cap'n Ad-Hom who has nothing at all constructive or factual to add but simply couldn't resist demonstrating his teenage level of maturity for the world to witness in all it's glory!

                  Thanks Cap'n!

                  Strat

                  What's there to say to someone who thinks making a billion dollars is just something produced by force of will?

        • by serviscope_minor ( 664417 ) on Tuesday November 01, 2016 @03:39AM (#53190391) Journal

          So if they are unable to find a regular job as an employee at government mandated minimum wage then they should not be allowed to earn *anything at all* then? When you're already desperate and starving anything is better than nothing.

          Are there no prisons? ... And the Union workhouses... Are they still in operation?"

          Why would they be desperate and starving? We have a thing called a social safety net here. If you can't find a job, you can go and sign up for jobseeker's allowance. The thing is we have a societal memory of the Victorian era. In many ways it was exactly like what you seem to want. People were free to sign up to whatever contracts they wanted, no matter how abusive, and people were free to starve. So we tried your way already and decided it wasn't very good.

          It's very possible they could make more working a couple of these "abusive" self-employment gigs than they could working a minimum-wage job

          Then do so. You're allowed to pay yourself less than the minimum wage, so start a company (or operate as a sole trader) and go nuts. What you can't do is employ other people under those conditions. Neither can you pretend your employees are actually contracting companies in order to escape those rules.

          Why do you think you have any right to tell others how to make a living if the activity/product is not illegal?

          The activity---of not paying people enough---is illegal. So that's a moot point. Not only that, it's legal for you to be paid less than the minimum wage, but it is illegal for them to do it. Only the employer is committing a crime. On legal matters, one must be precise.

          I chose not to be a billionaire because I didn't want to put in the kind of effort, dedication, and in these times, stoop as low as one needs to acquire such a fortune.

          Ha, no. Just because you are choosing not to pursue it, doesn't mean you could achieve it if you pursued it. There are more than enough a squeezing, wrenching, grasping, scraping, clutching, covetous, old sinners who have spent a lifetime trying to get that far and have not achieved it.

          • by AmiMoJo ( 196126 ) on Tuesday November 01, 2016 @07:54AM (#53191057) Homepage Journal

            Back in the 90s, before the minimum wage came in, you would see job adverts like "Security guard, £100/week, 100 hours, bring own dog". When someone took up that job it had two effects. Firstly the government had to keep paying them benefits, because £100/week isn't enough to pay rent or have both food and electricity at the same time, all while feeding the dog. Secondly that person was trapped, 100 hours/week leaving them little time to look for better jobs and if they quit their benefits would stop because they "voluntarily" gave up work.

            On top of that, it's blatant exploitation of the individual.

            So the government realized that it would be better to set some limits. A minimum wage, a maximum number of hours worked per week. Chances are the company simply paid what was required, since they needed a security guard no matter what. But even if they just replaced that person with a CCTV camera or two, at least the benefits that the government would have had to pay anyway were now enabling the ex-employee to spend time looking for a better job, improving their CV or getting more education and training. Just shoving people into dead-end, subsistence wage jobs was a false economy.

            • Interestingly though, my view on things changes if there was a basic income scheme. I think in that case, one could argue for scrapping the minimum wage.

              The difference being, I think, that there's none of the problem getting trapped because you can't quit. And there's also no desperation where people have to take awful, low paid jobs just to quit.

              I'm sort of in two minds. On the one hand it may enable companies to sponge off the tax payers (like they don't already!) by offering sub living wage jobs and havi

    • by Malc ( 1751 )

      No they're not. They're saying that you can act like a full time employer without abiding by the laws and rules and presumably taxes associated with full time employment. Uber drivers aren't free to do as they wish such as setting their own prices, which are controlled by Uber.

    • No what they are saying is that UK actually understand how contract law works, and slavery is still illegal. You can not sell yourself into slavery no matter what you sign.

  • the cable co's have been doing this for years with all of the subcontracted workers that are controlled way to much to be Self-Employed Contractors,

  • There's the old saying: "Be careful what you ask for, because you might get it". The Uber drivers who want to be classified as employees may think that they are suddenly going to have all the benefits of employees with none of the disadvantages. They may be rather unhappy, when they suddenly discover that they:

    - must meet productivity targets

    - cannot work for the competition

    - must work particular hours

    - must service particular areas

    - generally are told exactly what/when/how they must do their work

    Drivers wi

  • by plopez ( 54068 ) on Tuesday November 01, 2016 @09:38AM (#53191753) Journal

    It's bleeding cash so look to them to become more desperate as time goes on. Their model does not work. See Bloomberg: https://www.bloomberg.com/news... [bloomberg.com]

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