The recent Uber case is an interesting reminder of the impact on technology on every day activities such as booking a taxi.
Broadly, the Uber app is an application which can be downloaded on to a mobile phone. Once this has been done and an account created, the user can then hail an Uber driver on demand to take them to their chosen destination. They will pay for the service using the app. The user can track where the driver is and this service is often cheaper than a traditional taxi booking service. Uber has more than 40,000 licensed drivers in 20 UK towns and cities, making more than a million trips per week.
Interestingly, Uber entices potential drivers on its website by saying: 'Driving for Uber lets you be your own boss, set your own hour and earn a nominal wage - all while using your own car'.
Despite these benefits, two Uber drivers brought a claim against Uber, saying that it was acting unlawfully by not paying holiday pay or sick pay and that they should be paid the National Living Wage.
Uber argued that it does not set minimum hours of work or set shifts, nor does it require drivers to work exclusively for them.
The drivers won their claim in the Employment Tribunal.
It is likely that the firm will appeal.
The interesting irony is that Uber drivers have been criticised for taking business form 'traditional' cab firms (in particular the 'black cab' drivers in London) - yet it is the very traditional approach to being a paid employee which these drivers seem to seek.
This case has wider implications for employers in that any employer that employs people on a freelance basis should look at their contracts of employment and their pay arrangements to ensure that they do not fall foul of similar claims.
To discuss this or any employment related issue, contact us.