The Court of Appeal’s justices highlighted the significant control Uber exercises over its drivers, noting that drivers logged into the app have limited opportunities to build their own business goodwill or negotiate the terms of their work.
New Zealand – The Court of Appeal has upheld a decision that Uber drivers should be treated as employees, not independent contractors.
The court dismissed Uber’s appeal against a 2022 Employment Court verdict favoring four drivers who argued for employee status.
One of the drivers, Mea’ole Keil, expressed his joy at the ruling, stating, “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.”
This decision, though specific to the four drivers involved, could set a precedent impacting other workers in the gig economy. Employees enjoy benefits such as leave entitlements, minimum wage, holiday pay, and protection against unjustified dismissal—rights typically unavailable to contractors.
Despite the ruling, Uber has announced that it will not alter its operations in New Zealand, planning instead to challenge the decision in the Supreme Court. Emma Foley, Uber’s managing director for New Zealand and Australia, emphasized the need for clarity in contractor arrangements, saying, “We believe such arrangements, where people have genuine flexibility and are also free to work for other companies, including competitors – are an important feature for all industries across New Zealand in the 21st century.”
The Court of Appeal’s justices highlighted the significant control Uber exercises over its drivers, noting that drivers logged into the app have limited opportunities to build their own business goodwill or negotiate the terms of their work.
The justices remarked on the “high level of control and direction” Uber holds over drivers while they are connected to the app.
Meanwhile, the Ministry of Business, Innovation and Employment has initiated a review of the law to better distinguish between employees and contractors. However, the Labour Party, First Union, and E tū have urged the Government to halt the review, fearing it may weaken workers’ rights.
In contrast, the National and Act parties, now in coalition, have agreed to review the Employment Relations Act. The Act Party, in particular, has advocated for amendments that would prevent contractors who have agreed to such arrangements from later challenging their employment status in court.
The party proposes that contractors sign agreements clearly stating their lack of access to full employee rights, while also highlighting the flexibility and opportunities available to them.
Workplace Relations and Safety Minister Brooke van Velden, also Act’s deputy leader, acknowledged the uncertainty the Uber case has created for businesses that rely on contracting models. She assured that the Government would provide the clarity needed for both workers and businesses.
Join our Channel...