Uber loses Dutch court battle over employment rights case
By Ishika Dangayach on Sep 13, 2021 | 04:33 AM IST
Uber drivers are employees, not contractors, and so have
more workers' rights under local labor rules, a Dutch court said on Monday.
According to a statement issued by the Amsterdam civil
court, three judges concluded that Uber's legal connection with its drivers
"conforms to all the characteristics of an employment contract.”
The judgment was hailed as a big win for Uber drivers by the
Dutch workers' union initiated the lawsuit.
"We are disappointed with this decision because we know
that the overwhelming majority of drivers wish to remain independent,"
said Maurits Schönfeld, Uber’s General Manager Northern Europe, AP reported.
He added that drivers "don’t want to give up their
freedom to choose if, when, and where to work. In the interest of drivers, we
will therefore appeal the court’s decision, whilst also continuing to improve
platform work in the Netherlands.”
The Amsterdam District Court agreed with the Federation of
Dutch Trade Unions (FNV), which contended that Uber's around 4,000 drivers in
the city are employees of a taxi firm and therefore be entitled to perks
comparable to the taxi industry.
Uber was sentenced by the court to pay the FNV 50,000 euros
($59,000) in damages for violating the collective labor agreement.
According to FNV, the judgment implies that Uber drivers
will be paid more and have greater rights if they become ill or have their job
terminated.
Earlier in February, 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.
With inputs from AP