The Gig Economy
N1081 INTERNATIONAL HRM Candidates must attempt ALL questions word count: 2000 words, +-10%The bibliography is not included in the word count. It is suggested, but not mandatory, that 1000 words are spent per question. References should be listed in APA or Harvard format. UBER DRIVERS ARE WORKERS NOT SELF-EMPLOYED, SUPREME COURT RULESBy Mary-Ann Russon, BBC NewsUber drivers must be treated as workers rather than self-employed, the UK’s Supreme Court has ruled. The decision could mean thousands of Uber drivers are entitled to minimum wage and holiday pay. The ruling could leave the ride-hailing app facing a hefty compensation bill, and have wider consequences for the gig economy. Uber said the ruling centered on a small number of drivers and it had since made changes to its business. In a long-running legal battle, Uber had finally appealed to the Supreme Court after losing three earlier rounds. Uber’s share price dipped as US trading began on Friday as investors grappled with what impact the London ruling could have on the firm’s business model. It is being challenged by its drivers in multiple countries over whether they should be classed as workers or self-employed. What’s the background to the ruling? Former Uber drivers James Farrar and Yaseen Aslam took Uber to an employment tribunal in 2016, arguing they worked for Uber.
Uber said its drivers were self-employed and it, therefore, was not responsible for paying any minimum wage nor holiday pay.” I think it’s a massive achievement in a way that we were able to stand up against a giant,” said Mr. Aslam, president of the App Drivers & Couriers Union (ADCU).”We didn’t give up and we were consistent – no matter what we went through emotionally or physically or financially, we stood our ground.”Uber appealed against the employment tribunal decision but the Employment Appeal Tribunal upheld the ruling in November 2017. The company then took the case to the Court of Appeal, which upheld the ruling in December 2018. The ruling on Friday was Uber’s last appeal, as the Supreme Court is Britain’s highest court, and it has the final say on legal matters. Delivering his judgment, Lord Leggatt said that the Supreme Court unanimously dismissed Uber’s appeal that it was an intermediary party and stated that drivers should be considered to be working not only when driving a passenger, but whenever logged in to the app. The court considered several elements in its judgment: Uber set the fare which meant that they dictated how much drivers could earn uber set the contract terms and drivers had no say in the request for rides is constrained by Uber who can penalize drivers if they reject too many ridesUber monitors a driver’s service through the star rating and has the capacity to terminate the relationship if after repeated warnings this does not improve looking at these and other factors, the court determined that drivers were in a position of subordination to Uber where the only way they could increase their earnings would be to work longer hours.
Jamie Heywood, Uber’s Regional General Manager for Northern and Eastern Europe, said: “We respect the Court’s decision which focused on a small number of drivers who used the Uber app in 2016.”Since then we have made some significant changes to our business, guided by drivers every step of the way. These include giving even more control over how they earn and providing new protections like free insurance in case of sickness or injury.”We are committed to doing more and will now consult with every active driver across the UK to understand the changes they want to see.”What did Uber argue? Uber has long argued that it is a booking agent, which hires self-employed contractors that provide transport. By not being classified as a transport provider, Uber is not currently paying 20% VAT on fares. The Supreme Court ruled that Uber has to consider its drivers “workers” from the time they log on to the app until they log off. This is a key point because Uber drivers typically spend time waiting for people to book rides on the app. Previously, the firm had said that if drivers were found to be workers, then it would only count the time during journeys when a passenger is in the car.” This is a win-win-win for drivers, passengers, and cities. It means Uber now has the correct economic incentives not to oversupply the market with too many vehicles and too many drivers,” said James Farrar, ADCU’s general secretary.”The upshot of that oversupply has been poverty, pollution, and congestion.”Why are some drivers unhappy with Uber? Get assignment help here
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