What does the Uber case mean for the wider gig economy?

By KMC Human Resources

07 Apr 2021

A ruling in the Supreme Court on 19 February 2021 established once and for all that in the UK, drivers that work for Uber are classed as ‘workers’ and are not therefore self-employed individuals.  Following this, Uber announced in March that they will pay drivers in the UK at least the national living wage, which from 1 April 2021 is £8.91 an hour and extended to those over 23 (previously 25 yrs). Drivers in the UK will also be entitled to minimum employment rights including time off and pension contributions.

The case between Uber and its ‘workers’ has been rumbling on for a number of years, having begun in 2016. Amongst the many nuanced arguments, the case between Uber BV and Others v Aslam looked at the ways in which Uber utilises its workforce, and therefore the way in which they should be classified within the eyes of the law.

But what implications does the ruling, and Uber’s subsequent announcement regarding the pay and benefits of their workers mean for others in the so-called ‘gig economy’?

Firstly, it has to be said that the case between Uber and its drivers has not yet been fully resolved, with drivers still arguing that the taxi app needs to go further in their pay commitment. The company has agreed to pay its drivers the minimum wage per hour for the hours when fares have been booked, but not for the time outside of this – ie. when drivers have their app on but are not actually on a booked journey. This is despite the fact that the Supreme Court ruled that drivers should be entitled to minimum wage throughout the time they have their app on.

For other companies employing workers on a ‘gig’ basis, the Uber case clearly sets a precedent for the legalities of utilising workers in this way.  Where companies have not been paying a minimum hourly rate, instead paying its staff (however casual) ‘per job’ that may not equate to the National Minimum Wage, taking pre-emptive action to review the pay and treatment of those that undertake work on their behalf should be a priority.

The Uber case raises some interesting points for employment law as a whole – including the issue of employment status. The Supreme Court’s ruling has created some clarity on how the law deems the workers of different statuses and the relationship between this status and the obligations of their employers to adhere to a minimum set of employment rights.

However, in a world where flexibility of working arrangements is becoming an increasing desire for those seeking work, it could be that we see more cases that centre around how workers are classified come to the fore.

 

Latest news

1

Construction begins on new Civil Service office building in Talbot Gateway Alan McBride Muse Will Town Defence Infrastructure Organisation Jennifer Chard Defence Business Services Cllr Lynn Williams Blackpool Council Garry Bowker Vinci

Construction begins on new Civil Service office building in Talbot Gateway

20 May 2025

2

Skiddle raises over £750,000 for charities Skiddle cheque presentation to Alder Hey Hospital

Skiddle raises over £750,000 for charities

20 May 2025

3

Former Victorian Hotel approved for residential conversion The site

Former Victorian Hotel approved for residential conversion

19 May 2025

4

REVOLUTION PARK: Work starts on Darwen’s new home of advanced manufacturing Oliver Webber, Tracy Clavell-Bate and Tim Webber from Barnfield Group with Cllr Phil Riley, second from right, Leader of Blackburn with Darwen Council

REVOLUTION PARK: Work starts on Darwen’s new home of advanced manufacturing

19 May 2025

5

Two Cuckoo Gins named winners in The Gin Guide Awards 2025 Mark Long

Two Cuckoo Gins named winners in The Gin Guide Awards 2025

19 May 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
22 May 2025 - 22 May 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Preston Freelancer Meet-Up: May
Freelancer Meet-Up May.png.png
LBV Hub Networking
22 May 2025 - 22 May 2025

Preston Freelancer Meet-Up: May

society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Amber River True Bearing quarterly investment seminar
LBV Hub Seminars
22 May 2025 - 22 May 2025

Amber River True Bearing quarterly investment seminar

Cottons Hotel & Spa , Knutsford, WA16 0SU

16:00 - 18:00

Liverpool Business Expo 2025
https---cdn.evbuc.com-images-881365363-4862066883-1-original.20241023-085714.jpeg.jpg
LBV Hub Awards
23 May 2025 - 23 May 2025

Liverpool Business Expo 2025

Aintree Racecourse , Liverpool , L9 5AS

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – May 29
Artboard 15.png.png
LBV Hub Seminars
29 May 2025 - 29 May 2025

Advantage: AI – A Workshop for Business Leaders – May 29

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin