In a landmark verdict with significant implications for the gig economy, New Zealand's highest court has ruled that drivers for the ride-sharing giant Uber should be classified as employees, not independent contractors.
A Unanimous Decision for Workers' Rights
On Monday, New Zealand's Supreme Court unanimously dismissed an appeal by Uber, thereby siding with a lower court's 2022 ruling. The original case, brought forward by two unions on behalf of four Uber drivers, determined that these individuals were indeed employees of the company. Uber had consistently argued that its drivers were independent contractors who merely used its digital platform.
This decision marks the end of a legal battle that saw Uber challenge the lower court's ruling in the Court of Appeal before taking it to the Supreme Court. The appeals court judges had previously highlighted the increased importance of defining employment status in today's world of fragmented and casualised work.
What This Means for Thousands of Drivers
The ramifications of this judgement are profound. The Workers First Union hailed the decision, stating it "paves the way for thousands of Workers First Union members to pursue full employment rights." This includes the potential for restitution for historic underpayment of wages and other entitlements.
The court described employment status as the essential gateway for workers to access a suite of statutory minimum entitlements. This critical access includes:
- Minimum wage guarantees
- Stipulated minimum hours of work
- Legally mandated rest and meal breaks
- Holiday pay, parental leave, and bereavement leave
- Domestic violence leave
- The right to pursue a personal grievance
The union also confirmed it would now be advancing collective bargaining efforts on behalf of the drivers, a move that could significantly shift the power dynamics within the New Zealand gig economy.
Uber's Reaction and the Road Ahead
In response to the verdict, Emma Foley, the Managing Director of Uber Australia & New Zealand, expressed disappointment. She stated that the decision "casts significant doubt on contracting arrangements across New Zealand." However, Foley sought to reassure users, noting that for now, the decision relates to only four drivers and that both Uber and Uber Eats would continue to operate as normal.
This ruling aligns New Zealand with other nations, such as the United Kingdom, where courts have also moved to grant gig economy workers enhanced employment rights and protections. The case sets a powerful precedent for how modern work arrangements are legally interpreted, potentially affecting countless other workers in similar roles.
