The Supreme Court has dismissed Uber‘s appeal against a previous court ruling, confirming that four drivers who challenged the rideshare company are to be considered employees.
This follows a 2022 Employment Court case brought by a group of four Uber drivers challenging their employment classification. They contended that drivers should be classified as employees instead of contractors, granting them rights to benefits like leave, holiday pay, and a minimum wage.
Summarising Uber’s position, the company stated, “Uber’s contracts with drivers and riders say that Uber only supplies the digital platform that then enables drivers and riders to connect and form their own business relationships. Uber argued that it does not itself provide passenger transport services.”
The court noted that Uber argued it “does not control drivers,” noting that drivers set their own working hours and can work with competing platforms. Uber maintained that drivers “essentially run their own businesses.”
However, the court unanimously rejected Uber’s case, stating that the company hires drivers to provide passenger transport services.
“Uber offers a rider the fare for the trip, and the rider accepts that offer. Neither drivers nor riders can effectively select one another, and they are practically anonymous vis-à-vis one another throughout the entire transaction,” a written summary of the court’s decision said.
“Uber earns its revenues by charging riders for trips and resolves any difficulties which might arise during each trip. A passenger could not reasonably be expected to think they were contracting with the driver when they got into the car.”
The four drivers who brought the case were deemed employees.
“This was because the factors pointing away from employee status (including intention, the drivers’ ability to choose their hours of work and to work for others, plus vehicle ownership) were outweighed by those pointing towards it (including integration, control and the lack of realistic ability for the drivers to develop their own Uber businesses).”
Uber expressed disappointment with the ruling. Emma Foley, general manager of Uber New Zealand, said, “We are disappointed by the Court’s decision, which casts significant doubt on contracting arrangements across New Zealand.”
“Independent contracting is a cornerstone of not just Uber but also our broader economy.”
Foley said most drivers preferred to maintain their independence, and the flexibility offered by Uber did not align with the demands of conventional employment.