Uber ordered to classify drivers as employees: Why it matters
What's the story
New Zealand's Supreme Court has ruled that Uber drivers should be classified as employees, not independent contractors. The unanimous decision upheld a 2022 ruling by the Employment Court in favor of four Uber drivers. The case was brought by two unions on behalf of the drivers, challenging Uber's classification of its drivers as independent contractors using its platform. The Supreme Court's ruling could allow Uber drivers to enjoy similar rights to those in several countries, including the UK.
Impact
Union welcomed the decision
The Workers First Union welcomed the decision, saying it "paves the way for thousands of Workers First Union members to pursue full employment rights." Emma Foley, Managing Director of Uber Australia & New Zealand, expressed disappointment over the ruling as it raises major questions about contracting arrangements across New Zealand.
Company statement
Uber's response and future plans
In her statement, Foley said the company was disappointed with the decision but assured that "Uber and Uber Eats will continue to operate as normal." The ruling was made after Uber appealed against a lower court's decision in the Court of Appeal. The judges had emphasized that determining whether a person is an employee is of "increased importance in light of growing fragmentation, casualisation, and globalization of work and workforces in New Zealand."