The Employee Appeal Tribunal (EAT) has upheld a decision that three private hire drivers working for Addison Lee are workers, not self-employed contractors, meaning they are entitled to benefits such as the National Minimum Wage and holiday pay.
At the original Employment Tribunal, Addison Lee contended that the drivers could not be workers as there was no mutuality of obligation and that each effectively ran their own small business. However, the ET ruled there was sufficient mutuality of obligation to give rise to an overarching contract between the parties.
The EAT has now rejected Addison Lee's appeal and agreed with the ET that the contractual documentation did not reflect the reality of the working relationship as there was an underlying obligation for the drivers to work for the company and to accept bookings
In a similar case, the Court of Appeal recently published its judgment on the employment status of Uber drivers. It dismissed the company's appeal and upheld an EAT decision that Uber should treat its drivers as workers.
The judgment said: "It is not real to regard Uber as working ‘for’ the drivers and that the only sensible interpretation is that the relationship is the other way around. Uber runs a transportation business. The drivers provide the skilled labour through which the organisation delivers its services and earns its profits."
