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

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.

13 of 230 comments (clear)

  1. Not just Uber. by Narcocide · · Score: 5, Insightful

    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.

    1. Re:Not just Uber. by Narcocide · · Score: 4, Insightful

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

    2. Re:Not just Uber. by rtb61 · · Score: 5, Insightful

      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..., 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.

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      Chaos - everything, everywhere, everywhen
  2. Re:Expected ruling from institutionalized employee by Anonymous Coward · · Score: 5, Insightful

    How the hell is working FOR Uber entrepreneurship. Can you Grow your Business?
    Can you Also deal with competing Companies?
    Deal Direct with Customers? Other them other services?
    No You work for Uber.

  3. Re:Expected ruling from institutionalized employee by magarity · · Score: 5, Insightful

    It's entrepreneurship because you get to decide when, where, and how much you work.

    That is the definition of flexible work hours. The definition of entrepreneur is someone who establishes a business.

  4. Re:Why is everyone against Uber? by ZenShadow · · Score: 4, Interesting

    On its face, Uber is an end-run around laws restricting taxi companies (it may not have started that way, but it definitely is now). Uber's whole scheme is analogous to patenting something that's already been done before by adding the phrase "on the internet". They're using weasel words to do things they're not supposed to be able to do by law.

    Whether you think the law is fair or not is a different issue.

    Because I feel that the laws there are too restrictive, I'd normally not really care. But then they get petulant. Did you know that Austin doesn't have Uber service? Austin wants all ridesharing services to fingerprint their drivers (which I believe the taxi companies are already required to do). The voters voted, and the law passed. Uber's response?

    They took their ball and went home.

    I use Uber fairly regularly. I love the service. I think it was needed, and for that reason I give them a pass on the medallion laws or whatever; the taxi companies needed a kick in the ass, and many of those laws probably exist due to corruption. But I [i]do not[/i] think it's unreasonable to comply with requests from municipalities that go to the safety of passengers -- or, for that matter, mandates to treat their employees fairly.

    And when they're so petulant that they'll pull out of a municipality instead of complying with the laws there, well... That just makes it clear that those whiners think they're special snowflakes, and have no qualms about punishing their customers in an attempt to obtain the special treatment they think they deserve.

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    -- sigs cause cancer.
  5. Re:Expected ruling from institutionalized employee by MightyMartian · · Score: 4, Informative

    I can't speak to British law, but in many jurisdictions there are actually legal definitions of employment to prevent what Uber appears to be doing, namely hiring people but calling them independent contractors to evade labor laws. It isn't like this is the first time that a company has tried a contractor scam to get around minimum wage and other worker protections.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  6. The IRS Test by TuballoyThunder · · Score: 4, Informative
    The IRS (which I assert is consistent with other tax authorities) has a series of tests that fall into three categories:
    • Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
    • Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
    • Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

    The questions (from Synergistech Communications, which also provides additional information), with the answers in bold based on my understanding of how Uber works:

    1. Are you required to comply with instructions about when, where, and how the work is to be done? Yes
    2. Does your client provide you with training to enable you to perform a job in a particular method or manner? No
    3. Are the services you provide integrated into your client's business operation? Yes
    4. Must the services be rendered by you personally? Yes
    5. Do you have the capability to hire, supervise, or pay assistants to help you in performing the services under contract? Yes
    6. Is the relationship between you and the person or company you perform services for a continuing relationship? No
    7. Who sets the hours of work? The driver
    8. Are you required to devote your full time to the person or company you perform services for? No
    9. Is the work performed at the place of business of the potential employer? No
    10. Who directs the order or sequence in which the work must be done? Uber
    11. Are you required to provide regular written or oral reports to your client? No
    12. What is the method of payment — hourly, commission or by the job? By the job
    13. Are your business and/or traveling expenses reimbursed? No
    14. Who furnishes tools and materials used in providing services? The driver and Uber
    15. Do you have a significant investment in facilities used to perform services? It depends
    16. Can you realize both a profit or a loss? Yes
    17. Can you work for a number of firms at the same time? Yes
    18. Do you make your services available to the general public? It depends
    19. Are you subject to dismissal for reasons other than nonperformance of contract specifications? Unknown
    20. Can you terminate your relationship without incurring a liability for failure to complete a job? Yes

    By my count the Uber-Driver relationship does not pass 4 of the tests and two more are borderline. The key point that makes the relationship tip towards employee is that the driver has no direct price control (they cannot quote a price to perform the service).

    1. Re:The IRS Test by mark-t · · Score: 4, Insightful

      Actaully, Uber drivers can't negotiate the price with passengers because the passengers aren't actually the driver's clients, Uber is, and the passengers are Uber's customers, not the drivers, so driver has absolutely no authority to negotiate a different rate of pay with them. The driver can either accept the rate that Uber said they will pay... or not. Accepting what a client said they would pay does not make the contractor who agreed to work for that amount an employee.

      There may be other reasons to consider Uber drivers employee's, but how the drivers are paid is definitely not one of them. If that, as you say, is really the tipping point, then Uber drivers would definitely be independent contractors.

  7. Re:What They're Actually Saying... by serviscope_minor · · Score: 4, Informative

    *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.

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    SJW n. One who posts facts.
  8. Re:Good luck fucking that chicken by serviscope_minor · · Score: 4, Informative

    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.

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    SJW n. One who posts facts.
  9. Re:Why is everyone against Uber? by Ash-Fox · · Score: 4, Insightful

    I don't understand why drivers expect to get all these benefits for working part time

    In the UK, companies are required to provide certain things to employees, part time or not. The issue here is the organisation is supposed to be employing these people as employees and not "self employed contractors", likely brought about with the similarity to how these are like zero-hour contracts.

    they signed on to work for them

    Just like someone employed under a zero-hour contract, however that doesn't mean the company is not responsible for them as an employee still.

    they can get another job if they don't like the situation

    And they can take the organisation to court if they don't believe it's following proper employment practices.

    or they just expect that because it's a big company they should get more?

    Small companies don't really make their employees declare that they're self employed contractors.

    I think this is more political, and the lobbyists are not getting their kickbacks like they do from local taxi companies.

    "Kickbacks" are illegal for politicans in the UK thanks to the Bribery act. If you have evidence of this, I would suggest you publish it so the British government and public can address it.

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    Change is certain; progress is not obligatory.
  10. Re: Ita about time! by Chrisq · · Score: 4, Insightful

    And nothing of value was lost...

    In fact something of value would be gained, the principle that you can't circumvent laws on hours, holiday pay, maternity pay, redundancy pay simply by saying that someone is a self-employed contractor. It doesn't matter whether Uber stay or go