The UK Supreme Court has ruled that Uber must classify its drivers as employees and not independent contractors, a decision that could deal a major blow to the company’s business model in one of its most important markets.
On Friday, the court said the labor court was right to conclude that Uber drivers are employees, as the decision was unanimous.
While the practical implications of the ruling are not yet clear, the decision could change the way Uber operates in the UK.
The company may have to offer drivers additional benefits including paid vacation and a minimum wage.
The next step is for the labor court to decide how to compensate the dozens of claimants.
The situation may also set a precedent for workers and other businesses in the wider temporary work economy, which has boomed during the outbreak due to the sharp increase in demand for food deliveries and other services.