A group of New Zealand Uber drivers have won a landmark case against the global ridesharing company, forcing it to treat them as employees, not contractors, and entitling them to a suite of worker rights and protections.
New Zealand’s employment court ruled on Tuesday that the drivers were employees, not independent contractors. While the ruling applies specifically to the case of four drivers, the court noted that it may have wider implications for drivers across the country.
The court “does not have jurisdiction to make broader declarations of employment status” so all Uber drivers “do not, as a result of this judgment, instantly become employees”, chief judge Christina Inglis wrote.
She continued, however: “It may well have broader impact, particularly where, as here, there is apparent uniformity in the way in which the companies operate, and the framework under which drivers are engaged.”
Employment status is the bedrock on which most of New Zealand’s minimum employment rights rest.
It is “the gate through which a worker must pass” before they can access legal minimum entitlements including the minimum wage, six minimum hours of work, rest and meal breaks, holidays, parental leave, domestic violence leave, bereavement leave, ability to pursue a personal grievance, and access to union membership and collective bargaining.
The case was jointly taken by First union and E tū union, both of which welcomed the decision on Tuesday.
“This is a landmark legal decision not just for Aotearoa but also internationally,” said Anita Rosentreter, First Union strategic project coordinator. In light of the verdict, she said, First Union was now accepting Uber drivers as members and would move to initiate collective bargaining.
Praful Rama, one of the Uber drivers represented in the case, said in a statement: “Finally, there is justice for Uber drivers. This will mean drivers will have a say, not just be subject to the control of Uber.
“We are employees,” he said.
A spokesperson for Uber said the company was “disappointed” and would be appealing against the decision. They said it was “too soon to speculate” on whether New Zealand’s drivers having employee status would affect the company’s operations in the country more broadly.
The decision follows a string of international cases where workers have taken gig economy companies to court to fight for employment rights.
In 2021, analysis showed gig economy companies such as Uber and Deliveroo had faced at least 40 major legal challenges in 20 countries, including Australia, Chile, Brazil, South Korea, Canada and across Europe.
In Italy in 2021, authorities fined UberEats, Glovo, Just Eat, and Deliveroo €733m for misclassifying 60,000 couriers. In the UK, the supreme court upheld a ruling last year that Uber’s drivers should be classified as workers rather than independent contractors.