Search

How can we help?

Icon

Michael Sippitt comments on Uber losing UK legal appeal against drivers’ rights

  • Landmark ruling sees company lose ruling its drivers should be classed as workers rather than self-employed.

Uber loses legal appeal against drivers’ rights. Spencer Platt/Getty Images

Taxi-hailing firm Uber has lost its appeal on Friday (10 November) against a ruling that its drivers should be classed as workers rather than self-employed.

In 2016, a tribunal ruled that drivers James Farrar and Yaseen Aslam were “Uber staff” and entitled to holiday pay, paid rest breaks and the minimum wage.

However, the company subsequently appealed, arguing its drivers were self-employed and were under no obligation to use its booking app.
Uber had claimed that 80% of its drivers should indeed be classified as “self-employed.”

But Judge Jennifer Eady QC upheld the employment tribunal’s original decision that any Uber driver who had the Uber app switched on was working for “Uber London Ltd” – its trading name in the British capital – under a “worker” contract and were therefore entitled to workers’ rights.

In the wake of the ruling, the company has said it will appeal the court’s decision and take it to the Supreme Court, more so as the ruling could have massive implications for Uber’s operating model.

The company has nearly 40,000 drivers registered to it in London alone, where it is entrenched in a battle with Transport for London to retain its public carriage licence.

Tom Elvidge, Uber UK’s acting general manager, said: “Almost all taxi and private hire drivers have been self-employed for decades, long before our app existed. The main reason why drivers use Uber is because they value the freedom to choose if, when and where they drive and so we intend to appeal.”

However, union GMB, which backed the case, said: “Uber must now face up to its responsibilities and give its workers the rights to which they are entitled. GMB urges the company not to waste everyone’s time and money dragging their lost cause to the Supreme Court.”

Commenting on the landmark ruling, Jon Heuvel, employment partner at Shakespeare Martineau, said few should be surprised by the development because Uber had it coming.

 

Michael Sippitt, chairman of Clarkslegal, said the scale of the prospective liability for national minimum wage, sick pay and holiday pay, that Uber could face all but guaranteed the company would escalate the legal tussle.

“It is the latest in a series of employment tribunal cases examining the status of workers, as seen with Deliveroo, CitySprint and Pimlico Plumbers. This ruling has arguably put the proverbial nail in the coffin of those businesses who seek to avoid the ramifications of worker status by trying to create unrealistic “self-employed” arrangements with those who work for them.”

Heuvel added that the ruling will impact not only Uber and others in the transport sector, but a whole number of other industries and businesses which use self-employed workers. “It is by no means the end of the issue – continued pressure from trade unions calling for tighter regulations means that the Uber ruling will likely be a catalyst for further scrutiny.”

Michael Sippitt, chairman of Clarkslegal, said the scale of the prospective liability for national minimum wage, sick pay and holiday pay, that Uber could face all but guaranteed the company would escalate the legal tussle.

“However, contrary to Uber’s statement, worker status is flexible for the business engaging the services because there is no ongoing obligation to provide work. This case does not extend to full employee status, which would confer entitlement to redundancy payments or to claim unfair dismissal, to these workers.”

Read article here.

By Gaurav Sharma

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

Michael Sippitt

Senior Consultant

View profile

+44 118 958 5321

About this article

Read, listen and watch our latest insights

Pub
  • 19 August 2025
  • Immigration

Navigating New UK Immigration Rules: The 2025 Changes

In our latest podcast, join Ruth Karimatsenga and Monica Mastropasqua from the immigration team as they guide you through the new 2025 UK Immigration Rules.

art
  • 18 August 2025
  • Privacy and Data Protection

Top 10 DUAA Compliance Tips for Employers

To support your preparation, we have outlined 10 practical tips to help employers navigate the new requirements and take full advantage of the DUAA’s reforms.

art
  • 15 August 2025
  • Employment

Employment Rights Bill – Get your tailored action plan now!

The Employment Rights Bill is a major piece of legislation which significantly overhauls worker’s rights.

art
  • 13 August 2025
  • Commercial Real Estate

Proposed Ban of upwards only rent reviews

In an effort to save the high street, the government has proposed to ban upwards only rent reviews in commercial leases, without any consultation with professional bodies. It has caught the commercial property sector completely by surprise.

art
  • 12 August 2025
  • Privacy and Data Protection

From WeTransfer to WhatsApp: How Unapproved Tools and “Shadow IT” Could Threaten UK GDPR Compliance

Businesses and self-employed professionals are in a constant pursuit of efficiency and productivity.  There are, as a result, no end of tools and products available to smooth digital workflows. 

art
  • 07 August 2025
  • Immigration

New simplified British Citizenship route for Irish Citizens now in force

From 22 July 2025, eligible Irish citizens who have been resident in the UK for five years can now register as British citizens under a new, simplified route.