October 2022 - New Zealand - Uber / Employment Court

Ruling on October 25, 2022

Authority: Employment Court

Parties: Uber / Employment Court

Subject: Drivers' employment status

Summary of facts: The Employment Court was tasked with assessing the real nature of the relationship between the four Uber drivers and Uber to determine whether the drivers are employees or independent contractors.

Legal question: what is the real nature of the relationship between drivers and the company?

Considerations: In reaching its decision, the Court looked past the wording of the drivers' contractual terms. Little weight was given to the drivers being labelled as “independent contractors”. Rather, the Court prioritised the control which was exercised by Uber over the drivers. For example, the contractual terms were set by Uber with the drivers being unable to engage in any negotiation. This in itself reinforced a high degree of control over their drivers. A key part of the control over the drivers was Uber’s ability to set the prices for each driver’s fare and not revealing this information until the driver had accepted the ride. Drivers could not develop their own branding, sign-write their cars, or differentiate themselves in any meaningful way. The contractual terms and app also functioned in a way which prevents drivers from establishing business relationships with clients. Uber was unable to convince the Court that they were purely a platform which connected customers with drivers.

Ruling: Drivers are deemed to be employees rather than independent contractors. 

Source: hobec.co.nz