Uber drivers are employees - Court of Appeal says

Monday, 26 August 2024

Uber has lost its appeal that its drivers in New Zealand are employees of the global ridesharing provider and not contractors.

The Court of Appeal has upheld a decision from the Employment Court that Uber drivers in in New Zealand are employees of the global ridesharing provider and not contractors.

Four drivers – through unions E Tū and First Union – took Uber to the Employment Court in 2022 asking for a declaration that said they were employees.

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 Employment Court 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”.

Uber argued in the Court of Appeal that the Employment Court had failed to take as a starting point the agreements between Uber and the drivers and the substantive rights and obligations for which those agreements provided.

In light of the decision First, Union and E tū representatives are demanding that Workplace Relations and Safety Minister Brooke van Velden immediately drop her expedited plans to reform New Zealand’s contracting law and prevent workers from being able to challenge their misclassification as contractors in future through the Employment Court.

For Nurredin Abdurahman, one of the four drivers who took the original court case, the decision is about hope.

'This is a win for all working people,' said Abdurahman, who is now a Wellington City councillor. 'The day of corporates like Uber exploiting NZ workers is coming to an end.'

Mea’ole Keil, another of the original Uber drivers who took the case, said he was proud that drivers took a stand against exploitation.

'I’m ecstatic, over the moon, and very emotional. It’s a relief. It’s been a long journey, a long fight,' Keil said.

First Union general secretary, Dennis Maga, said the Court of Appeal’s decision would “change the landscape of employment in Aotearoa for the decades ahead of us'.

'This decision will ensure more workers are in secure jobs and not prone to precarious and exploitative misclassification by companies like Uber,' Maga said.

The union would now seek a collective agreement for Uber drivers in New Zealand, he said.

Emma Foley, managing director of Uber Australia & New Zealand, said the company would seek to appeal the decision, which “exacerbates the current state of uncertainty for workers who value the flexibility of contracted arrangements and for businesses across New Zealand that rely on contractor workforces”.

“There is an urgent need for certainty in the law pertaining to contractor arrangements. 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 twenty-first century.”