Employment Court rules four Uber drivers are employees

Tuesday, 25 October 2022

Uber drivers in New Zealand have won an employment case ruling they were employees of the global ridesharing provider and not contractors.

The four drivers – through unions E Tū and First Union – took Uber to the Employment Court asking for a declaration that said they were employees.

First Union strategic project coordinator Anita Rosentreter said it was a “landmark legal decision not just for Aotearoa but also internationally”.

'Uber has bullied its way into cities all over the world - that ends here in Aotearoa today,' Rosentreter said.

Uber said the decision was disappointing and an appeal should be expected.

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As employees, the four drivers were entitled to the rights and protections under New Zealand employment law, including the minimum wage, guaranteed hours, holiday pay, sick leave, KiwiSaver contributions, the right to challenge an unfair dismissal, and the right to unionise and collectively bargain.

The judgment found that although the ruling attaches only to the individual drivers, “it may well have broader impact, particularly where, as here, there is apparent uniformity in the way in which the companies operate, and the framework under which drivers are engaged”.

Chief Employment Court judge Christina Inglis heard the three-weeks-long case and ruled that the drivers were not running their own businesses and they effectively served as employees of Uber.

“Uber is the only party running a business. It is in charge of marketing, pricing and setting the terms and nature of the service provided to riders, restaurants and eaters.

“The plaintiff drivers were required to provide their labour with due skill, care and diligence, and to maintain high standards of professionalism, service and courtesy – all set and enforced by Uber.”

Inglis said Uber “creates, dictates and manages the circumstances under which its business is carried out, and driver labour is deployed in order to grow that business”.

“All of which points firmly towards an employment relationship.”

Though the case related directly to the four drivers, Julian Ang, Mea’ole Keil, Nureddin Abdurahman and Praful 'Bill' Rama, it could have wider implications for others.

Rama said it was “justice for Uber drivers”. “This will mean drivers will have a say, not just be subject to the control of Uber.”

Uber spokesperson Danny Cowan said in a statement feedback from

“Gig workers play an important role in our communities and economy and Uber is committed to improving standards for all independent workers, across all platforms,” he said.

“We will continue to work collaboratively with industry and the New Zealand Government throughout the contractor policy reform process.”

Richard Wagstaff, of the New Zealand Council of Trade Union, said the ruling was “a massive win”.

“These drivers deserve protection under New Zealand’s employment law, including pay, guaranteed hours, leave, KiwiSaver contributions, and the right to unionise.”

Workplace Relations Minister Michael Wood said ruling appeared significant, but the broader implications needed to be considered further.

“What it clearly does point to is this area and the law about who's an employee and who's a contractor. I have a view and the Government has a view that there are cases of misclassification out there. That's why we've started work around reform in this area to make sure that employees who really are employees are classified in the right way.”