London (Bioreports Business)The UK Supreme Court has ruled that Uber must classify its drivers as workers and not independent contractors, a decision that could deliver a major blow to the company’s business model in one of its most important markets.
The court said on Friday that an employment tribunal had been right to find that Uber drivers are workers. The decision was unanimous.
While the practical effects of the ruling are not yet clear, the decision could change how Uber (UBER) does business in the United Kingdom. The company may be forced to grant additional benefits to drivers including paid time off and a minimum wage. The next step is for an employment tribunal to decide how to compensate dozens of claimants.
The case may also set a precedent for other workers and companies in the broader gig economy, which has thrived during the pandemic due to a sharp increase in demand for food deliveries and other services.
— This is a developing story and will be updated.