Uber is awaiting the ruling of the British Supreme Court on whether drivers are workers

LONDON – Uber’s problems in the UK are not over yet, despite the fact that he is getting back his license for the London industry.

The rowing company is awaiting a major ruling from the country’s high court on whether managers should be classified as workers rather than independent contractors.

This is a case that reflects Uber’s fight with California regulators over the rights of its drivers last year. A loss for the business could jeopardize its business model and have broader consequences for the so-called gig economy.

Here’s what you need to know.

It all started with a ruling in the UK in 2016.

The tribunal ruled in favor of a group of Uber executives, led by Yaseen Aslam and James Farrar, who claimed that their workers were employed by Uber and therefore entitled to rights such as a minimum wage, holiday pay and rest breaks.

Uber insists its drivers are self-contained, a classification that offers them minimal protection. He does not want them to be treated as workers, as this would reduce the flexible work arrangement for which service became known and result in higher costs for the enterprise.

The company lost each appeal against the original decision on the employment tribunal in the lower courts in Britain, and therefore appealed to the Supreme Court.

Uber says it has improved over time in terms of treating its drivers, which includes benefits such as insurance to insure diseases or injuries and the payment of maternity and paternity. But lawyers representing the managers say the relationship with the manager means he has to pay a minimum wage.

Uber is not the only platform that reclassifies the management of managers as workers. Free Now, a taxi app jointly owned by Daimler and BMW, said most drivers use multiple services and “enjoy the flexibility along with it.”

“By the nature of the matter, it will be very challenging and not necessarily beneficial for them to change their status from contractors to workers or employees,” a Free Now spokesman told CNBC.

The Supreme Court will deliver its verdict on Friday around 09:45 London time. The verdict is broadcast live on the court’s website.

Friday’s ruling could have major long – term consequences for Uber and the UK’s gig economy, with an estimated workforce of 5.5 million people.

For Uber, a loss would mean the firm would have to go to the British Labor Court to determine compensation for drivers.

What will be important in the Supreme Court’s ruling is not only whether managers should be classified as workers, but in what scenarios they work. For example, is a driver at work as soon as they open their program, or only after fetching their passengers? This is what the judges are debating.

Pinar Ozcan, professor of entrepreneurship and innovation at Oxford University’s Said Business School, told CNBC last year that the case is an example of another showdown with the power struggle between platforms and their members. ‘

The world has changed since Uber originally lost its labor rights case. The coronavirus pandemic has taken its toll on drivers who drive, and demand has fallen amid the ongoing global health crisis. Meanwhile, couriers for Uber Eats and other takeaway programs today are considered by many to be essential workers, delivering food to people staying at home.

The pandemic, according to Ozcan, has led to an “acceleration of performance work”, with people losing their jobs due to lock-in measures.

“I think we will see more people how we have to redefine the terms of performance and make it attractive to (platform) members,” she said.

“Of course the platforms are going to fight back because it really cuts their revenue,” Ozcan said. “That power struggle is going to increase, if anything, because more people will be attracted to actions.”

Uber won a battle with the state of California last year, which introduced new legislation in an effort to classify app-based taxi drivers as employees. But voters backed a polling measure called Proposition 22, which allowed companies like Uber and Lyft to treat them like independent contractors.

Uber offers a ‘third way’ for the working status of gig workers, which gives drivers some protection but still work smoothly.

The firm on Monday shared proposals for such a model with the EU ahead of a European Commission review of gig-economy platforms. One measure that Uber has proposed is the idea of ​​benefit funds that can be used by workers for things like health insurance and paid off time.