Employment Contracts
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Uber Employment ruling.
Law Courts make ruling that may change employment Law for the gig economy.
The impact of the recent employment tribunal ruling will potentially have a massive impact for tens of thousands of UK workers.
The recent ruling found that Uber drivers are not self employed and therefore are entitled to receive the National Living Wage.
The Company is now liable to claims from is approximated 40,000 drivers, who suddenly find themselves entitled to holiday pay, pensions and other workers rights in addition to the National Living Wage, that said Uber is presently appealing against the decision.
It hasn't taken long for other workers to act in trying to establish the same workers rights, Deliveroo riders are looking to unionise and obtain workers rights, and the point argued by the workers is that they are not contractors.
The so called, 'gig economy' claim that their workers don't work for them, the workers are all independent contractors, a notion described as 'ridiculous', and brings into question their business model, if they need to operate under a different set of Employment Laws to others.
The ruling however was not greeted well by all, as some workers had concerns that the classification of employees could change the way they work, their responsibilities, who they are answerable to, their day to day working practice could change.
This decision will impact the business and no doubt its clients, increases in charges, a hit in profit margins, may be both, the company will need to change its business model, whilst the present modus operandi offers many benefits, it also leaves the door open to worker exploitation which is unacceptable.
I am sure it's not the end of the gig economy; it's just employment rules catching up with the changing ways we work.
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