New Zealand Employment Court Declares 4 Uber Drivers As Employees Of The Company

New Zealand's court verdict can force the US ride-hailing giant to treat its drivers as employees rather than independent contractors

An Employment Court of New Zealand has declared four Uber drivers as proper employees of the company, paving the way for other countries to follow the suit, reported IANS. The landmark ruling that came on Tuesday, can force the ride-hailing giant to treat its drivers as employees rather than independent contractors.

According to the report, the judge found that all four drivers were employees of Uber during the periods where they performed transportation services. The Uber drivers were part of a class-action lawsuit filed last July. Between August 2016 and May 2022, the four drivers had written agreements with the various entities at different points.

"The written agreements all specified that the entities were not employers but rather providers of the App that connects drivers to the digital platform and facilitators of the interactions on the platform," read the ruling by Christina Inglis, chief judge of the Employment Court.

The Employment Court highlighted the need to adopt a purposive approach to determining the status of the drivers, having regard to the applicable legislation and its role in protecting vulnerable workers, regulating the labour market, and ensuring the maintenance of minimum standards, reported IANS.

A significant control was exerted on Uber drivers in other ways, including via incentive schemes that reward consistency and quality and withdrawal of rewards for breaches of Uber's Guidelines or for slips in quality levels, measured by user ratings, court said in its ruling.

"Drivers were restricted from forming their own relationships with riders or from organising substitute drivers to perform services on their behalf," the judge observed.

The court found that in reality, Uber exercised significant control over each of the drivers, according to IANS. The court held that the drivers did not run a business of their own, drivers worked for that business; it was not simply a commercial arrangement. The judgment may have a broader potential impact on other Uber drivers globally.

The decision in New Zealand came after the US Department of Labour proposed sweeping changes to how gig workers should be classified. US Labour Secretary Marty Walsh has previously said that a lot of gig workers in the United States should be classified as “employees” who deserve work benefits.