Uber faces first UK legal action over drivers' rights to paid leave and minimum wage

The GMB union argues that Uber drivers should be considered as employees and have 'fundamental' workers’ rights

The company has already faces protests, bans and restrictions in a number of cities (Getty)

Uber and its drivers will head to court on Wednesday as the company faces its first legal action over the status of its workers in the UK.

The company behind the taxi hailing app, valued at $62.5 billion (£47 billion), will appear at the Central London Employment Tribunal on Wednesday. The case is brought by the law firm Leigh Day and supported by the GMB union, which represents drivers.

GMB argues that Uber drivers should be considered as employees and have “fundamental” workers’ rights such as the national minimum wage and holiday pay.

“Uber drivers face very difficult working conditions and with cuts to fares we believe that some of our members are taking home less than the national minimum wage when you take into account the costs of running a car,” Justin Bowden, GMB national secretary, said.

“GMB believes this could pose a safety risk to drivers and the public as some drivers are forced into working longer and longer hours in order to make ends meet and are unable to take any paid holiday,” he added.

Uber, whose investors include Goldman Sachs and Alphabet’s Google, considers its drivers to be self-employed which allows them the flexibility of being able to work when they choose.

“More than 30,000 people in London drive with our app and this case only involves a very small number. The main reason people choose to partner with Uber is so they can become their own boss, pick their own hours and work completely flexibly,” said Jo Bertram, regional general manager, Uber UK.

“Many partner-drivers have left other lines of work and chosen to partner with Uber for this very reason. In fact two thirds of new partner-drivers joining the Uber platform have been referred by another partner,” she added.

The company has already faces protests, bans and restrictions in a number of cities.

Uber agreed to pay up to $100 million (£75 million) to settle a class-action lawsuit, avoiding a trial that could have reclassified the work status of its drivers in California and Massachusetts in April this year.

The company has also recently agreed to pay $10 million (£7 million) to settle a dispute over its background checks for drivers in San Francisco and Los Angeles.

Matt Gingell, an employment law partner at Gannons solicitors, said the case could have wider implications for Uber.

“The case may have serious implications for Uber’s operations in the UK and for the gig economy in general. If these drivers are deemed employees Uber may well have to change its UK business model. Other UK businesses with similar operations could be affected too,” he told the Independent.

Annie Powell, employment lawyer at firm Leigh Day, said the claim is vital for thousands of Uber drivers who work in England and Wales.

“We are seeing a creeping erosion of employment rights as companies misclassify their workers as self-employed so as to avoid paying them holiday pay and the national minimum wage,” Powell said.

The trial is expected to last until early next week.

The judgement is expected to be reserved to a later date.