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| Uber settles over employee status row | Uber settles over employee status row |
| (about 1 hour later) | |
| Taxi-hailing firm Uber has agreed to pay up to $100m (£70m) to settle a legal action over whether drivers should be classified as employees or independent contractors. | |
| Drivers had argued that they should be classed as employees, entitling them to claim expenses and other rights. | Drivers had argued that they should be classed as employees, entitling them to claim expenses and other rights. |
| The decision to settle will come as a relief to Uber and others in the on-demand economy who use contractors. | The decision to settle will come as a relief to Uber and others in the on-demand economy who use contractors. |
| But critics will be disappointed the case is not going to trial. | But critics will be disappointed the case is not going to trial. |
| In a blog post, Uber boss Travis Kalanick said he was pleased with the settlement, which means drivers will continue to be independent contractors. | |
| "Drivers value their independence - the freedom to push a button rather than punch a clock, to use Uber and Lyft simultaneously, to drive most of the week or for just a few hours," he said. | "Drivers value their independence - the freedom to push a button rather than punch a clock, to use Uber and Lyft simultaneously, to drive most of the week or for just a few hours," he said. |
| But he acknowledged: "We haven't always done a good job working with drivers. | But he acknowledged: "We haven't always done a good job working with drivers. |
| "It's time to change." | "It's time to change." |
| Grievances | Grievances |
| Uber has agreed to some changes in its business practices, including a better policy explaining why it was terminating drivers' contracts. | Uber has agreed to some changes in its business practices, including a better policy explaining why it was terminating drivers' contracts. |
| It also said that it would help create a drivers' association in California and Massachusetts - where the actions were brought - that would act in a similar way to a union and be able to bring grievances to management's attention. | It also said that it would help create a drivers' association in California and Massachusetts - where the actions were brought - that would act in a similar way to a union and be able to bring grievances to management's attention. |
| Some 450,000 drivers use the Uber app each month in the US, according to Uber. | Some 450,000 drivers use the Uber app each month in the US, according to Uber. |
| One of the lawyers for the drivers, Shannon Liss-Riordan, said there would be disappointment that the case was not now going to trial but added that there was a "significant risk of losing" if the case moved forward. | One of the lawyers for the drivers, Shannon Liss-Riordan, said there would be disappointment that the case was not now going to trial but added that there was a "significant risk of losing" if the case moved forward. |
| This is partly because a federal appeals court had recently agreed to review an order allowing Uber drivers to sue as a group. | This is partly because a federal appeals court had recently agreed to review an order allowing Uber drivers to sue as a group. |
| The settlement does not prevent future court, or US labour bodies, classing Uber drivers as employees, Ms Liss-Riordan added. | The settlement does not prevent future court, or US labour bodies, classing Uber drivers as employees, Ms Liss-Riordan added. |
| Out of the $100m proposed payment, $84m will go to drivers in the first instance. Uber has agreed to a second payment of $16m if the firm goes public and its valuation increases one and a half times from its December 2015 valuation within the first year. | |
| The deal must now be approved by US District Judge Edward Chen in San Francisco. | The deal must now be approved by US District Judge Edward Chen in San Francisco. |