Tech

Uber must classify drivers as employees, not contractors: Dutch court

Uber should classify its drivers in Amsterdam as staff fairly than contractors, a Dutch court docket dominated Monday, in a blow to the ride-hailing firm’s gig-economy enterprise mannequin. 

The information follows an analogous resolution earlier this 12 months within the UK, through which the nation’s supreme court docket gave greater than 70,000 Uber drivers entry to a minimal wage, pension plan and paid trip, amongst different advantages. 

Now, Amsterdam’s District Courtroom says Uber can be required to increase related advantages to the corporate’s 4,000 drivers within the metropolis after siding with the Federation of Dutch Commerce Unions. The court docket discovered that Uber drivers are the truth is staff of a taxi firm and may due to this fact obtain the identical advantages as different taxi drivers, who’re coated by a sectorwide bargaining settlement. 

Uber should additionally pay a $59,000 fantastic and will in some circumstances have to present drivers again pay, the court docket dominated.

The ride-hailing firm stated that it deliberate to enchantment the choice and “has no plans to make use of drivers within the Netherlands.”

“We’re disillusioned with this resolution as a result of we all know that the overwhelming majority of drivers want to stay unbiased,” stated Maurits Schönfeld, Uber’s basic supervisor for northern Europe. “Drivers don’t need to quit their freedom to decide on if, when and the place to work.”

In the meantime, a spokesperson for the Federation of Dutch Commerce Unions praised the choice.

“Because of the decide’s ruling, the Uber drivers at the moment are routinely employed by Uber,” stated Zakaria Boufangacha, FNV’s deputy chairman. “In consequence, they are going to obtain extra wages and extra rights within the occasion of dismissal or sickness.”

Within the US and most different markets, Uber classifies its drivers as contractors fairly than staff, permitting the unprofitable firm to keep away from paying out a minimal wage or sick days. 

In 2020, Uber, Lyft, Instacrat and different contractor-based apps spent a reported $200 million in a push to enshrine their proper to make use of contract labor into California regulation although a poll measure referred to as Proposition 22. 

The measure handed — however was overturned in August by a decide who referred to as the rule unconstitutional. Uber has stated it deliberate to enchantment that ruling as properly. 

With Submit wires

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