Uber drivers are celebrating today as the Court of Appeal dismisses Uber’s appeal of the historic 2022 Employment Court verdict that found four drivers were misclassified as contractors by the international ridesharing company and were entitled to full employment protections in law like the right to sick leave and holiday pay, and the right to join a union.
In light of the decision, FIRST Union and E tū representatives are demanding that Workplace Relations and Safety Minister, Brooke van Velden, immediately drop her expedited plans to reform New Zealand’s contracting law and prevent workers from being able to challenge their misclassification as contractors in future through the Employment Court.
Of particular importance in today’s ruling, the Court of Appeal has applied what it considers to be a more accurate analysis of section 6 of the Employment Relations Act, and reached the same conclusion as the Employment Court in the original verdict. The Court of Appeal used the term “window dressing” to describe the terms provided to drivers by Uber in relation to their employment conditions.
For Nureddin Abdurahman, one of the four drivers who took the original court case, the decision is about hope.
“This is a win for all working people,” said Mr Abdurahman.
“The day of corporates like Uber exploiting NZ workers is coming to an end!
“I’m grateful to the legal system for identifying an injustice to the working class and examining it properly. I’m extremely happy – this will make a huge difference at a time where Uber drivers are still being mistreated by the company.
“Some drivers have no other options – this decision is all about hope and will help them in moving forward with the appropriate rights of permanent employees.
Mea’ole Keil, another of the original Uber drivers who took the case, said he was proud that drivers took a stand against exploitation.
“I’m ecstatic, over the moon, and very emotional. It’s a relief. It’s been a long journey, a long fight, and we want to thank the unions’ legal teams for keeping the faith in us,” said Mr Keil.
“I think that personally for drivers, it’s an affirmation that we were right – we were not contractors but employees. We hope our win here will help others who are in unfair working relationships with employers to stand up for themselves.
“For too long employers like Uber have exploited gaps in legislation to hide the true employment relationship and take advantage of workers unfairly – we had to take a stand and pray that the legal system would back us – it has.”
FIRST Union General Secretary, Dennis Maga, says the Court of Appeal’s verdict is heartening and motivating for the drivers and unions against a backdrop of anti-worker reforms under the National Government, and it is key for politicians to read and understand the significance of this court case and the dismissed appeal.
“This will change the landscape of employment in Aotearoa for the decades ahead of us,” said Mr Maga. “This decision will ensure more workers are in secure jobs and not prone to precarious and exploitative misclassification by companies like Uber.
“The majority of Uber drivers still do not earn minimum wage. This appeal and ruling now cements the fact that drivers have been misclassified as contractors and denied basic employment rights by Uber.
“We’ve already supported more than 1000 Uber drivers to file and seek wage and holiday pay arrears in the Employment Relations Authority, and FIRST Union has initiated collective bargaining with Uber already – this work can now progress after being effectively on hold for this ruling.”
Mr Maga said FIRST Union would now continue to progress backpay claims, encourage Uber drivers to join the union, and seek a Collective Agreement for Uber drivers in New Zealand.
Rachel Mackintosh, E tū National Secretary, said the decision shows clearly that Uber workers are indeed employees and are entitled to the rights and protections that cover all employees in Aotearoa New Zealand.
“The Uber model of employment is new, but the importance of workers’ rights is not. We have legislation to stop exploitative employers taking advantage of precarious workers, and the courts have not accepted Uber’s argument that they are somehow above the law,” said Ms Mackintosh.
“Today’s decision is a real cause for celebration, not just for the affected Uber workers but for the whole Aotearoa workforce, as it confirms what E tū and FIRST Union have long argued – fundamental workers’ rights are protected by law.
“This decision should be a warning to the Government as they consider tampering with employment laws to give vulnerable workers fewer protections. As new ways of working emerge, it’s crucial that our employment laws are there to protect working people, and not allow them to be exploited.”
Today’s ruling echoes other international courts in determining that Uber drivers are employees, not contractors or self-employed people, for example in the UK (2021) and the Netherlands (2019). These courts found that Uber effectively controls drivers’ hours and wages, and that drivers are an integral part of Uber’s business. As employees, Uber drivers are entitled to minimum wage, holiday pay, and other key workers’ rights.
TIMELINE OF EVENTS – UBER CASE
1. July 2021: Uber drivers file legal action
FIRST Union and E tū file legal action on behalf of four Uber drivers, arguing that drivers have been misclassified as contractors. The drivers argue that Uber exerts significant control over their work, including setting fares and managing driver performance, which supports their claim for employee status.
2. June 2022: Employment Court hears the case
The Employment Court hears arguments from both sides. Uber argues that drivers are independent contractors who choose their working hours and terms. The unions argue that Uber’s operational practices and control over the drivers’ work structure meet the criteria for employment.
3. October 2022: Employment Court verdict
The Employment Court rules that the four Uber drivers should be classified as employees, citing Uber’s control over the work environment and terms of employment. FIRST Union and E tū celebrate the ruling as having significant relevance to the broader misclassification of workers as contractors in Aotearoa.
4. June 2023: Uber files appeal
Uber files an appeal against the Employment Court’s decision, arguing that the classification of drivers as employees would negatively impact the company’s business model and flexibility. FIRST Union and E tū criticize Uber’s appeal, arguing that it seeks to undermine the progress made for workers’ rights and protections.
5. November 2023: National-led Coalition Government takes office
The new National-led coalition government begins its term, with potential implications for labour laws and gig economy regulations. The National Party and ACT coalition agreement contains a pledge to stop workers from being able to challenge their employment status in the Employment Court in future.
6. March 2024: Court of Appeal hears Uber’s appeal
The Court of Appeal hears Uber’s arguments that drivers should remain classified as contractors. Uber argues that drivers have significant control over their work and hours. The counsel for the drivers argues that Uber’s control over various aspects of the drivers’ work environment justifies employee status.
7. May 2024: Brooke van Velden meets with Uber
Brooke van Velden, Workplace Relations Minister meets with Uber on May Day while unions hold marches to protest the Government’s anti-worker policies. Unions raise concerns about political influence on the legal process and allege that the Government’s close relationship with Uber could undermine the legal process.
8. June 2024: Government expedites contractor law change plan
Brooke Van Velden instructs her officials to begin work on law changes that could prevent workers misclassified as contractors from challenging their employment status in the courts. FIRST Union confirms that the union has not been invited to submit on the proposed law changes under the expedited timeline.
9. (today) 26 August 2024: Court of Appeal ruling on Uber’s appeal
The Court of Appeal rules to dismiss Uber’s appeal of the Employment Court’s 2022 verdict.
