Uber Faces Tribunal Over Holidays And Sick Pay

An Uber driver using the app

Uber is facing an employment tribunal claim from drivers who argue it is acting unlawfully by not offering rights such as holiday and sick pay.

The GMB union is backing two test cases which will also determine whether Uber drivers are entitled to receive a guaranteed minimum wage.

In addition, drivers are unhappy at pay being docked for customer complaints.

The GMB said that the case, being heard at the Central London Employment Tribunal, would have an impact on a further 17 claims that have been brought against Uber and wider implications for its tens of thousands of drivers in the UK.

It said the case was the first time that the company will have faced legal action in the UK over the issue of whether their drivers are classed as workers or are self-employed.

Annie Powell, employment lawyer at Leigh Day, which is bringing the case, said: "We will argue that Uber exerts significant control over its drivers in order to provide an on-demand taxi service to the public.

"If Uber wishes to operate in this way, and to reap the substantial benefits, then it must acknowledge its responsibilities toward those drivers as workers.

"We are seeing a creeping erosion of employment rights as companies misclassify their workers as self-employed so as to avoid paying them holiday pay and the national minimum wage."

GMB national secretary Justin Bowden said: "Uber drivers face very difficult working conditions and with cuts to fares we believe some of our members are taking home less than the national minimum wage when you take into account the costs of running a car."

Uber, which allows users to book and pay for a taxi by smartphone, says its more than 30,000 London drivers enjoy the flexibility of being able to work when they choose and receive on average more than the minimum wage.

The firm has grown rapidly around the world and is valued at $62.5bn (£48bn). The tribunal is expected to last until next week but judgment could then be reserved for several weeks.

It comes after Uber agreed in April to pay up to $100m (£76m) to settle lawsuits by US drivers over whether they should be classified as independent contractors or employees.

The case could have threatened the ride-hailing service's business model had the company lost at trial.