Uber drivers in the U.K. are entitled to paid time off, a minimum wage, and other benefits previously denied to gig economy workers, The Wall Street Journal reported on Friday (Feb. 19).
The U.K. Supreme Court ruled unanimously to uphold a lower court’s decision that Uber and other gig economy workers are employees and not independent contractors. The gig economy’s classification of its workers is being debated in the U.S. and other parts of the world. Uber had appealed the rulings of the lower court.
The ruling could set a precedent for the broader gig economy, CNN reported. It is a setback for Uber, which had come under fire by labor activists and transportation regulators in the U.K. London is one of Uber’s busiest locations.
The suit against Uber was brought by gig drivers Yaseen Aslam and James Farrar in 2016 and was first heard by a British employment tribunal. The two were victorious in the employment tribunal and in two appeals brought by Uber.
The U.K. court ruling follows recent action in California that made Uber and similar platforms exempt from state employment laws.
Uber recently announced plans to acquire the alcohol delivery platform Drizly. It also acquired Postmates last year and partnered with NimbleRx. Drizly has experienced growth topping 300 percent over the past year in the 1,400 U.S. cities and 27 states where it currently delivers.
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Uber CEO Dara Khosrowshahi said in a recent blog post that the company believes all independent contractors deserve a “decent wage.”
