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Businesses Government The Courts United Kingdom

Uber Appeals Against Ruling that Its UK Drivers Are Workers (theguardian.com) 178

Uber has launched an appeal against a landmark employment tribunal ruling that its minicab drivers should be classed as workers with access to the minimum wage, sick pay and paid holidays. From a report on The Guardian: The taxi-app company filed papers with the appeal tribunal on Tuesday in an attempt to overturn the October judgment that, if it stands, could affect tens of thousands of workers in the gig economy. The move came as several dozen Uber drivers picketed City Hall on Wednesday holding placards demanding Transport for London, which licences Uber as a private hire operator in the capital, "end sweated labour now." It also mounted a protest at the City of London offices of Salesforce, a US computing company that is a major Uber client. Two Uber drivers, James Farrar and Yaseen Aslam, took Uber to court on behalf of a group 19 others who argued that they were employed by the San Francisco-based company, rather than working for themselves. Uber's business model has been based on treating drivers who log on to its app as self-employed contractors and taking a cut of their fares, which Uber dictates.
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Uber Appeals Against Ruling that Its UK Drivers Are Workers

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  • In Other News (Score:4, Insightful)

    by sexconker ( 1179573 ) on Wednesday December 14, 2016 @01:48PM (#53484933)

    In other news, brat has tantrum.

    Film at 11.

    • Re: (Score:2, Troll)

      by cayenne8 ( 626475 )
      Good Luck Uber!!!

      There needs to be a fight to preserve the rights to BE and USE independent contractors.

      No one holds a gun to anyones' head to drive for Uber. If you want to work this model..do it...if not, don't work it but don't cut the ability to work in this model for others that WANT to....geez!!

      • Re: (Score:2, Interesting)

        by Anonymous Coward

        Independent contractors should able to set independent rates.

        • Re: (Score:2, Interesting)

          Um bullshit. Companies hire contractors at their own set rates. The ability to set your own rate has nothing to do with being a contractor.
          • Just here to remind everyone not to feed 1100100100 - he is a troll and his post is bait.

            • Just here to remind everyone not to feed 110010001000 - he is a troll and his post is bait.

              FTFY. You missed a couple of zeros in his username.

              • I don't even dignify him with a copypasta of whatever his string is anymore. I just know it's 11...10...10.

          • As a contractor I always negotiate with my clients.

            • Of course. But just because you are a contractor doesn't mean you get to negotiate the rate. The ability to negotiate a rate is not what makes someone a contractor.
              • Of course a contractor has the right to negotiate a rate. He doesn't have the right to dictate it, because the other party also has the right to negotiate it. If they can't get an overlap, they both walk way - no deal.

                Protip: use the right word for the right meaning. It makes you look less retarded.

                • You guys are the ones "retarded". The legal definition of a contractor doesn't even include the right to negotiate OR dictate your rate. So your entire argument is bogus. Uber drivers are contractors.
                  • "You guys are the ones "retarded"."

                    Or is it Mr 110010001000 the retarded one?

                    "The legal definition of a contractor"

                    What you think the legal definition of a contractor given USA laws has nothing to do with whatever the UK definition is -which is relevant since this is about a UK case.

                    "Uber drivers are contractors."

                    Sure. That's why Uber lost the case and the tribunal told they are *not* contractors. So much for you comprehension of what "legal" means.

                    Now, I think we all know who the retarded one is.

          • Um bullshit. Companies hire contractors at their own set rates. The ability to set your own rate has nothing to do with being a contractor.

            Well except that many of those actually got clobbered by the IR35 legislation and were told that their contractors were in fact employees, so no they couldn't dodge a whole bunch of tax by calling employees something else.

          • by dbIII ( 701233 )
            It appears that the court disagrees with your well crafted expert legal opinion based on decades of experience (or not).
          • Um bullshit. Companies hire contractors at their own set rates. The ability to set your own rate has nothing to do with being a contractor.

            You might want to stop talking out of your ass. All it does is make you look like a fool.

            As a contractor, only I set my rates. Companies usually have a budget for a project, but I've never seen one that "only hires contractors for $45 an hour".

        • Independent contractors should able to set independent rates.

          They can. If it is a rate that Uber agrees with, Uber will award a contract. If not, they will use another contractor.

          Where Uber is going wrong is forbidding drivers (contractors) supplying services to other service operators. THIS is what truly prevents a contractor from setting their own rate.

      • No one holds a gun to anyone's head to work for any company. That doesn't change the fact that if part of the contract of working there is fixed hours, fixed pay, fixed requirements for how you behave, then you're employed by them, not a contractor.

  • by TWX ( 665546 ) on Wednesday December 14, 2016 @01:52PM (#53484953)
    Specific working conditions define whether a worker is an employee or is a contractor, and the laws governing such are generally pretty straightforward. How Uber thinks it should be exempt from these rules doesn't make any sense.

    Of course they're operating an unlicensed taxi service in violation of passenger livery laws too, so I guess following the law is not something they're especially good at.
    • by Anonymous Brave Guy ( 457657 ) on Wednesday December 14, 2016 @02:09PM (#53485077)

      Specific working conditions define whether a worker is an employee or is a contractor, and the laws governing such are generally pretty straightforward.

      Sadly, in the UK the law in this area is anything but straightforward. This has been a controversial issue, the ambiguity has been a significant problem for genuine contractors, freelancers and sometimes small family businesses for a long time now, and the loss of tax revenue to disguised employees is a problem for the government as well.

      However, in this case, Uber seems to be on the wrong side of so many of the usual indicators that it's hard to see how it stands any chance at all of victory here unless some sort of dubious legal shenanigans are possible.

      • Sadly, in the UK the law in this area is anything but straightforward.

        In America, the IRS publishes a list of criteria, but none of them are specifically necessary or sufficient to determine if someone is an employee or a contractor. The determination is usually ad hoc, with a lot of discretion left to employers, IRS agents, and judges. Anyone claiming that contractor law is "straightforward" has no idea what they are talking about.

    • Where I live Uber have argued that they should be (and are) exempt from Passenger driving licensing laws, because their own vetting system is so much better than the one mandated by the government.

      The Land Transport Safety Authority are having none of it though, and Uber drivers are being fined if they are caught operating without the right license.

      Uber will be gone in a couple of years (here at least), as in most major markets there is an over supply of taxis, so Uber has no edge.

      According to this [nzherald.co.nz] Uber

  • by Anonymous Brave Guy ( 457657 ) on Wednesday December 14, 2016 @01:52PM (#53484957)

    I don't fancy Uber's chances here at all. Disguised employment is a big deal for the government in the UK, including for tax reasons. Even if Uber wins the appeal, it's not unlikely that full legislation would follow to close whatever loophole it relied on.

  • by sinij ( 911942 ) on Wednesday December 14, 2016 @01:52PM (#53484961)
    Gig economy is a social equivalent of dumping toxic waste into a river. Any company that operates like this deserves what they get.
    • But that's the modern way of doing business! It's a great business model.

      1. Start a _____ company.
      2. Ignore all laws and regulations that _____ companies are required to follow.
      3. Profit!!!

      You can fill in the blank with any kind of company you want. They call it "disruptive innovation". I guess because ignoring laws is so innovative.

  • by tlambert ( 566799 ) on Wednesday December 14, 2016 @01:56PM (#53484985)

    "...who argued that they were employed..."

    That's easy: "You're fired. Anyone else think they are an employee?"

    The only thing that would make it better is if all the taxi drivers in London had to dress like Bruce Willis in "The 5th Element".

    • The thing is, if they are employees, then under UK employment law you can't just fire them like that. This is one of the major protections that employees enjoy but independents typically do not, and it's a good example of why the distinction is so important in a situation like this.

    • by zifn4b ( 1040588 )

      That's easy: "You're fired. Anyone else think they are an employee?"

      UK doesn't have at-will employment. The US does. Try again.

      • That's easy: "You're fired. Anyone else think they are an employee?"

        UK doesn't have at-will employment. The US does. Try again.

        US at-will employees are still protected by federal and state laws (e.g., discrimination, harassment, whistle-blowing.) An employer can terminate without cause, but not in a way that is illegal.

      • You can't claim unfair dismissal until you've been working for the employer for two years. So until then it's as close to it as makes any difference.

        https://www.gov.uk/dismiss-sta... [www.gov.uk]

    • by Calydor ( 739835 )

      Ooh, a wrongful termination suit! Thank you!

      And yes, if you say I'm fired that's acknowledgement that I WAS an employee, otherwise you couldn't fire me in the first place.

  • Mixed Feelings (Score:3, Insightful)

    by hackel ( 10452 ) on Wednesday December 14, 2016 @02:03PM (#53485025) Journal

    I have such mixed feelings about this issue. On the one hand, worker rights are crucial essential. I don't want any business to be able to operate as a loophole to get around them. On the other, this is a new business model that is still developing, and it's wrong to just shut it down. Uber and its competitors have really revolutionized transportation. Before, I *never* would have taken a taxi in a first world country, as they have always been obscenely expensive. Now I can actually get around when public transportation fails me or is inconvenient.

    The burst pricing model is actually quite brilliant, but I do think that Uber dictating the price drivers can charge does really push the argument in the drivers' favour, though. If it were literally just a SAAS app that independent contractors used to find customers, they would have complete control to set their own prices, etc. Maybe this is a change that needs to happen. I'm not sure. What I do know is, we can't deny people the opportunity to work part-time, or however they want, simply because it would require the company to provide them with expensive benefits. That doesn't make sense.

    Perhaps a new model of benefits needs to be created for this type of employment. If you argue that a traditional worker should be entitled to 4 weeks of paid holiday per year, then that's 1 hour of holiday per hour worked, right? So, once a person reaches, say, 96 hours (of actual drive time with a customer, on the clock), they would be eligible to receive a bonus of 8 hours (times the minimum wage, I guess?) on their next pay cheque. I'm just brainstorming, and this idea is sounding worse the more I write, so I'll stop. I just think some other kind of ideology needs to be developed.

    • Re:Mixed Feelings (Score:4, Informative)

      by sinij ( 911942 ) on Wednesday December 14, 2016 @02:09PM (#53485079)
      Just because traditional cabs are such vile and corrupt system, doesn't mean that Uber that replaces them with gig drivers is not a corrupt and vile system.
    • Re:Mixed Feelings (Score:4, Informative)

      by Anonymous Brave Guy ( 457657 ) on Wednesday December 14, 2016 @02:24PM (#53485203)

      There are already plenty of viable ways to work independently in the UK. Well over a million of us do so all the time, through freelancing, contract work, partnerships, and other arrangements. We knowingly and willingly make different trade-offs to employees in terms of protections, compensation, flexibility and other factors, and if you get it right, this can bring advantages to both the professional and their customer/client.

      However, what you're not allowed to do under UK law is put someone in a position where they're being treated like an independent in respects like employment rights and taxation, yet still required to give up the practical independence and flexibility that non-employees normally enjoy in return.

    • by tsqr ( 808554 )

      If you argue that a traditional worker should be entitled to 4 weeks of paid holiday per year, then that's 1 hour of holiday per hour worked, right?

      1 hour of holiday per hour worked?? No. Assuming a 40-hour week, 4 weeks of holiday per year is 3.07 hours of holiday accrual per week, or 0.077 hours per hour. 96 drive time hours would get you 7.38 holiday hours, which is pretty close to the 8 hours you stated.

    • Damn, no mod points today so please so someone mod up this insightful post that for once is neither an Uber-froth-fanboy ass-kissing, nor the reverse

    • you couldn't get around for cheap. They'd raise their prices to reduce demand. Uber wants more rides because they're not concerned with vehicle maintenance (those costs are 100% the driver). So they can focus on Maximizing raw dollar throughput and ignore the costs to the driver. This is how/why Uber ends up being less than minimum wage in all but a few ultra high demand markets.
    • Re:Mixed Feelings (Score:4, Insightful)

      by dbIII ( 701233 ) on Wednesday December 14, 2016 @10:52PM (#53487761)

      On the other, this is a new business model that is still developing

      New? It's 19th century piece-work disguised by lies.

      "Ride Sharing?" As if the driver is going to drive to your destination whether you are in the car or not.

  • My first reaction to this was, "You knew the job was dangerous when you took it." Sort of like people moving into houses next to an airport, then complaining about the noise from aircraft taking off and landing.

    Don't know what the final ruling might be on this, but it seems like if being an Uber driver is a job in the normal sense, then it would lose most of the flexibility that makes it attractive to people who do it at their convenience. I'm wondering what sort of benefits part-time workers in the UK are

    • I'm wondering what sort of benefits part-time workers in the UK are entitled to.

      People keep using the word "worker" in this discussion, from the title onwards, but what we're talking about from a legal and tax perspective is being an employee.

      In the UK, employees enjoy broadly similar employment rights and protections whether they are part time or full time. There are some controversial areas, like the zero-hours contracts that are popular with certain businesses right now, and internships. There are also certain aspects that affect some groups, such as people working in very seasonal

      • The ruling actually gave 'worker' status, not 'employee'. The former carries only some of the obligations of the latter and is a sort of half way house between ongoing employment and being in business on your own account.

        Critically, it does cone with rights to the minimum wage and holiday pay, though.

        • My apologies, you're right and I was wrong. Apparently I'd confused the case being described here with one of the other complaints I'd seen about Uber's business practices recently.

          I think most of my previous post remains true either way, though. We're still talking about a determination by an employment tribunal, and the rights and benefits concerned still typically apply proportionately for part-time workers where that makes sense.

  • by alternative_right ( 4678499 ) on Wednesday December 14, 2016 @02:17PM (#53485155) Homepage Journal

    Taxi companies take on the burden of vetting, licensing, requiring education on street locations, and the like for their workers.

    To avoid flooding the market, they ensure that only a limited number of drivers are able to be licensed.

    They buy expensive insurance and work with law enforcement.

    Uber is succeeding not because it is disruptive, but because is new and therefore has not been battered by misfortunes over time into adopting a similar model.

    It is cheap because it passes all of these costs onto you, and onto its insurance companies, who have not yet figured out the full scope of the risk involved, mainly because they will make a tidy profit selling what should be expensive insurance cheaply because Uber is expanding.

    Those who have any brains at Uber intend to build up the business and sell out because they know their fortune cannot last.

    • Those who have any brains at Uber intend to build up the business and sell out because they know their fortune cannot last.

      I wish that were the case, but from my understanding, Uber is just trying to establish dominance in ride-sharing before automated cars get major approval. Then they can dispense with all these drivers and keep all the money.
  • Just create an open source free downloadable app that lets drivers and riders hook up with no central business at all. Have a rating system that allows riders to rate the drivers. Allow the rider and driver to negotiate their own rates. And run it heavily encrypted and/or connected through TOR to prevent snooping.

    "The first rule of Ride-Share Club is; Don't talk about Ride-Share Club!" Cut out the ability for anyone, like the government, to know who you deal with or if or how much money changed hands in the

    • One side-effect of this cracking-down on working by 'gig' by the various governments, is how it may affect your average gigging musician/band playing the local bar/club. If local bars/clubs have to treat bands/musicians as employees,
      I think that it only extends to a musician if the musician band ONLY works for one club owner.
      Or the musician works for multiple club owners, but all their contracts are through one booking agent and the booking agent sets the prices/compensation.

      I think that most musicians play

  • by fiannaFailMan ( 702447 ) on Wednesday December 14, 2016 @04:58PM (#53486471) Journal

    We covered this in college in our Manufacturing Management course. The law in the UK has a lot of grey areas concerning what constitutes and employer/employee relationship, and it's not as simple as who's cutting the paycheque. Who do you report to? Who's controlling the method of work? Who determines your hours? There's a multitude of factors that have to be taken into consideration and weighed up collectively on a case-by-case basis. The word "reasonable" shows up a lot in these laws, and that's wide open to interpretation. The precedent that this sets is going to be interesting.

  • Given that contract classification abuse (if not outright fraud) is something well known across the world, Uber can't PR themselves out of this one.

They are called computers simply because computation is the only significant job that has so far been given to them.

Working...