This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-37629628
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| What does Uber's employment case mean? | What does Uber's employment case mean? |
| (about 20 hours later) | |
| An employment tribunal in London is to hand down what could be a seminal judgement in a case that could have wide-ranging implications. | An employment tribunal in London is to hand down what could be a seminal judgement in a case that could have wide-ranging implications. |
| It has been described as a test case not only for the business model of ride-hailing firm Uber, but for the whole so-called "gig economy". | It has been described as a test case not only for the business model of ride-hailing firm Uber, but for the whole so-called "gig economy". |
| Two Uber drivers are claiming that Uber is acting unlawfully by not paying holiday or sick pay. | Two Uber drivers are claiming that Uber is acting unlawfully by not paying holiday or sick pay. |
| Uber insists its drivers are self-employed. | Uber insists its drivers are self-employed. |
| The ride-hailing firm has really taken off in the UK. | The ride-hailing firm has really taken off in the UK. |
| It has more than 40,000 licensed drivers in 20 towns and cities making more than a million trips per week. | It has more than 40,000 licensed drivers in 20 towns and cities making more than a million trips per week. |
| But the outcome of this case may not only affect its business model, but could also change the relationship between many firms and their self-employed workers. | But the outcome of this case may not only affect its business model, but could also change the relationship between many firms and their self-employed workers. |
| What are the drivers saying? | What are the drivers saying? |
| Two drivers, James Farrar and Yaseen Aslam, have argued that they are employed by Uber, but they don't have basic workers' rights. The cases were brought by the GMB union. | |
| A further 17 claims have been brought against Uber, according to law firm Leigh Day. | A further 17 claims have been brought against Uber, according to law firm Leigh Day. |
| The drivers say they should be entitled to holiday pay, and that they should be paid the National Minimum Wage. | The drivers say they should be entitled to holiday pay, and that they should be paid the National Minimum Wage. |
| For example, Mr Farrar said his net earnings in August 2015 after expenses were £5.03 an hour. | For example, Mr Farrar said his net earnings in August 2015 after expenses were £5.03 an hour. |
| The drivers are arguing that their actions are controlled by Uber, so in effect they are employed by the firm. | The drivers are arguing that their actions are controlled by Uber, so in effect they are employed by the firm. |
| Once they have accepted a job they are not notified of the destination, and they face punitive measures if they don't perform well enough, for example. | Once they have accepted a job they are not notified of the destination, and they face punitive measures if they don't perform well enough, for example. |
| They say sums of money are frequently deducted from their pay, often without advance warning. | They say sums of money are frequently deducted from their pay, often without advance warning. |
| However, not all Uber drivers are unhappy with pay and conditions. Jonathan Esseku told the BBC he was happy to describe himself as self-employed, and that he had initially been attracted to Uber by potential earnings. | |
| "When I want to work I log on [to the Uber app], and when I don't, I log off," he said. "I think it's good." | |
| He added that after expenses he makes around £13 per hour, and works 35 to 40 hours per week. | He added that after expenses he makes around £13 per hour, and works 35 to 40 hours per week. |
| What is Uber saying? | What is Uber saying? |
| Uber argues that there are more than 30,000 drivers in London and 40,000 in the UK using its app, and that many do so because they can work flexibly. | |
| The firm says drivers, whom they call "partners", can "become their own boss". | |
| The firm says it is a technology company that provides an app to put drivers in touch with customers. | The firm says it is a technology company that provides an app to put drivers in touch with customers. |
| It doesn't set shifts or minimum hours, or make drivers work exclusively for Uber, it says. | It doesn't set shifts or minimum hours, or make drivers work exclusively for Uber, it says. |
| It adds that in September UberX (the most basic private car service that Uber has to offer) drivers made £16 an hour on average, after Uber's service fee, and that only 25% logged in for 40 or more hours per week. | It adds that in September UberX (the most basic private car service that Uber has to offer) drivers made £16 an hour on average, after Uber's service fee, and that only 25% logged in for 40 or more hours per week. |
| What is at stake? | What is at stake? |
| The case has huge implications for employment law, according to Luke Bowery, a partner at Burges Salmon. | The case has huge implications for employment law, according to Luke Bowery, a partner at Burges Salmon. |
| It could extend employment rights to many more people "and could have a major impact on how the growing gig economy functions". | It could extend employment rights to many more people "and could have a major impact on how the growing gig economy functions". |
| Either side will be likely to appeal against the tribunal's decision if it loses, because the stakes are high. | Either side will be likely to appeal against the tribunal's decision if it loses, because the stakes are high. |
| Although the decision isn't technically binding on employment tribunals, it will be "highly persuasive" for them, Mr Bowery says. | Although the decision isn't technically binding on employment tribunals, it will be "highly persuasive" for them, Mr Bowery says. |
| What happens if Uber loses? | What happens if Uber loses? |
| The company would have to give drivers back-pay for unpaid benefits in the UK, and pick up the future cost of those benefits. | The company would have to give drivers back-pay for unpaid benefits in the UK, and pick up the future cost of those benefits. |
| The tribunal's decision "may also have an impact on how Uber operates in other countries and we have already seen similar significant claims from drivers being settled in the US," Mr Bowery says. | The tribunal's decision "may also have an impact on how Uber operates in other countries and we have already seen similar significant claims from drivers being settled in the US," Mr Bowery says. |
| Would fares go up? | Would fares go up? |
| They may have to. | They may have to. |
| Uber could pass the costs on to customers through higher fares, but that would "disrupt Uber's ability to offer a flexible and responsive service to its customers - potentially hitting at the heart of service delivery, as well as its profit margins," says Mr Bowery. | Uber could pass the costs on to customers through higher fares, but that would "disrupt Uber's ability to offer a flexible and responsive service to its customers - potentially hitting at the heart of service delivery, as well as its profit margins," says Mr Bowery. |
| What happens to the 'gig economy'? | What happens to the 'gig economy'? |
| If Uber loses, the trend of firms taking on self-employed workers who engage with work through apps may have to change radically. | If Uber loses, the trend of firms taking on self-employed workers who engage with work through apps may have to change radically. |
| "Other major operators in the gig economy such as Excel, CitySprint, Addison Lee and Courier are already facing similar claims from their drivers," says Mr Bowery. Firms like Deliveroo could also be affected. | "Other major operators in the gig economy such as Excel, CitySprint, Addison Lee and Courier are already facing similar claims from their drivers," says Mr Bowery. Firms like Deliveroo could also be affected. |
| These firms would either have to change their business models, face similar employment tribunal claims, or pass the increased costs onto customers. | These firms would either have to change their business models, face similar employment tribunal claims, or pass the increased costs onto customers. |
| But if the case goes against the Uber drivers, then it gives a green light for new technologies and services to enter the market, Mr Bowery says. It also validates this type of flexible working. | But if the case goes against the Uber drivers, then it gives a green light for new technologies and services to enter the market, Mr Bowery says. It also validates this type of flexible working. |
| "At its best, [the gig economy] increases flexibility and enables people to combine more secure employment with additional income. | "At its best, [the gig economy] increases flexibility and enables people to combine more secure employment with additional income. |
| "When operated in the right way, many individuals, including some Uber drivers, highly value the benefits the gig economy can bring," says Mr Bowery. | "When operated in the right way, many individuals, including some Uber drivers, highly value the benefits the gig economy can bring," says Mr Bowery. |
| "These benefits do need to be balanced, however, against potential exploitation and we are unlikely to have seen the last of claims of this type as the gig economy continues to grow." | "These benefits do need to be balanced, however, against potential exploitation and we are unlikely to have seen the last of claims of this type as the gig economy continues to grow." |