Uber loses UK supreme court battle over employment rights case

In the Supreme Court, Uber has lost its dispute for the rights of drivers - a ruling that could have major consequences for millions of people in the gig economy.

The court in the United Kingdom ruled against the ride-hailing app and concluded the drivers should be treated as staff, not as private third-party workers, ensuring that they are entitled to basic workplace rights, including minimum wage and holiday pay.

The decision is challenging Uber's business model in the UK. The conflict will go back to a tribunal that how much these 25 drivers will be awarded who brought the case five years ago.

In 2016, Yaseen Aslam and James Farrar, who argued they were employees hired by Uber and thus entitled to such labor rights, which ruled in favor of the drivers by an employment tribunal.

In 2017, Uber struck back and appealed the decision. The organization said it acted like most conventional minicab companies and counts its drivers as independent contractors, which essentially offers minimal safeguards for Uber drivers, such as no holiday or sick leave.

Uber views itself as a forum for technologies that link riders and drivers and, in the end, take a payment.

The decision of the Supreme Court could jeopardize Uber's business model in the United Kingdom, resulting in higher costs for the company. Since the case involves only the drivers involved in the 2016 lawsuit, it sets a significant example that could impact other Uber drivers and gig workers.

In Britain, Uber has about 60,000 drivers, including 45,000 in London, one of the most significant markets.

The gig economy, where individuals choose to operate on a job-by-job basis for one or more firms, has faced opposition from unions who say it is exploitative, although corporations emphasize versatility as an asset.

In the US, the ride-hailing and delivery firms won a big battle, a measure named Proposition 22 was approved by California voters that would see freelance employees continuing to be categorized as independent contractors in November, overturning a historic labor law passed in 2019.