Drivers win case to get minimum wage

Associated Press

LONDON

Uber’s claim that its drivers are contractors – and not employees entitled to vacations – was rejected Friday by a British tribunal, in a ruling that may have implications for a range of companies that rely on self-employed workers.

The employment tribunal ruled that the two drivers who brought the action were employees of the ride-hailing service, and so were entitled to paid time off and a guaranteed mini-mum wage. Uber plans to appeal.

While the ruling may eventually affect as many as 30,000 Uber drivers, it also has implications for more than 100,000 independent contractors in Britain’s so called gig economy, where people work job-to-job with little security and few employment rights.

Such employment, often for app-based services for everything from food delivery to health care, has surged as the Internet cuts the link between jobs and the traditional workplace.

The ruling could also encourage Uber drivers in other countries to seek recognition as employees. Uber has fought those efforts as the change would raise its operating expenses significantly and go against its business model and identity.

The ability to provide cheaper rides has been integral to its success and appeal.

Based in San Francisco, Calif., Uber describes itself as a technology company that links self-employed drivers with people who need rides.