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Addison Lee loses appeal on worker rights | Addison Lee loses appeal on worker rights |
(35 minutes later) | |
A claim that Addison Lee's drivers are employees, not self-employed contractors, has been upheld in a major blow to the taxi company. | A claim that Addison Lee's drivers are employees, not self-employed contractors, has been upheld in a major blow to the taxi company. |
The Employment Appeal Tribunal ruling confirms that drivers should be paid the minimum wage and holiday pay. | The Employment Appeal Tribunal ruling confirms that drivers should be paid the minimum wage and holiday pay. |
The judgement could affect thousands of Addison Lee drivers and follows similar rulings against ride-sharing firm Uber and delivery company Hermes. | The judgement could affect thousands of Addison Lee drivers and follows similar rulings against ride-sharing firm Uber and delivery company Hermes. |
GMB, which brought the case, called it a "huge win" for worker rights. | GMB, which brought the case, called it a "huge win" for worker rights. |
"Other employers should take note - GMB will not stop pursuing these exploitative companies on behalf of our members," said Sue Harris, the union's legal director. | "Other employers should take note - GMB will not stop pursuing these exploitative companies on behalf of our members," said Sue Harris, the union's legal director. |
It follows a finding by an employment tribunal last year on behalf of three Addison Lee drivers, who argued they should be entitled to the minimum wage and holiday pay. | It follows a finding by an employment tribunal last year on behalf of three Addison Lee drivers, who argued they should be entitled to the minimum wage and holiday pay. |
'Pressuring the firm' | 'Pressuring the firm' |
Liana Wood, a solicitor acting for the drivers, said Wednesday's ruling would only affect the individuals who brought the claims, all of whom have left the company and are seeking compensation. | Liana Wood, a solicitor acting for the drivers, said Wednesday's ruling would only affect the individuals who brought the claims, all of whom have left the company and are seeking compensation. |
But she said claims from about 40 other current and former Addison Lee drivers would now proceed and had a good chance of succeeding. | But she said claims from about 40 other current and former Addison Lee drivers would now proceed and had a good chance of succeeding. |
"Nothing will automatically happen for the thousands of other drivers working for Addison Lee, they would have to bring claims themselves," she told the BBC. | "Nothing will automatically happen for the thousands of other drivers working for Addison Lee, they would have to bring claims themselves," she told the BBC. |
"But what we would hope is that this ruling puts pressure on the firm to change its practices." | "But what we would hope is that this ruling puts pressure on the firm to change its practices." |
Explaining its decision on Wednesday, the EAT rejected Addison Lee's arguments that the drivers were self-employed contractors running their own businesses | Explaining its decision on Wednesday, the EAT rejected Addison Lee's arguments that the drivers were self-employed contractors running their own businesses |
It also confirmed that the "unrealistic terms and conditions" that drivers had to sign up to did not reflect the true nature of their relationship with the company. | It also confirmed that the "unrealistic terms and conditions" that drivers had to sign up to did not reflect the true nature of their relationship with the company. |
Michael Lange, one of the drivers, said on Wednesday: "We now urge Addison Lee to do the decent thing and stop denying its workforce of over 4,000 drivers their rights." | Michael Lange, one of the drivers, said on Wednesday: "We now urge Addison Lee to do the decent thing and stop denying its workforce of over 4,000 drivers their rights." |
Addison Lee said in a statement: "We note the appeal verdict, which we will carefully review. Addison Lee is disappointed with the ruling as we enjoy a positive relationship with the vast majority of our 3,800 driver partners. | |
"In common with most of the industry, the majority are self-employed, and with earnings at a record high, over 60% said they were likely or very likely to recommend working for Addison Lee in our most recent driver satisfaction survey." |