Labour pushes Tories to enshrine workers' rights for Uber drivers into law

Shadow minister says the workers could be exploited through 'loopholes'

(AFP/Getty)

The Labour party has moved to force the Government to enshrine protections for Uber drivers and other such “gig economy” workers in law, arguing that ministers must act to close “legal loopholes”.

A landmark UK employment tribunal judgment on Friday ruled that Uber, a US-headquartered minicab company with a popular smartphone app, must pay its drivers minimum wage and that they were entitled to holiday pay like any other UK employee.

Uber had argued that it in fact does not employ the workers and merely connects self-employed minicab drivers to customers using Uber’s app.

The judgment that the workers are indeed employees could have far-reaching implications for apps that use similar models of worker management for tasks ranging from fast food delivery to house cleaning.

Shadow Digital Economy minister Louise Haigh has tabled an amendment to the Government’s Digital Economy Bill, New Clause 24.

She said there was still a danger that despite the ruling, Silicon Valley multinationals and other employers could use “loopholes” to break the rules and get around workers’ protections.

“This is a landmark ruling for workers in the digital economy, and a great victory for the GMB and its members,” Ms Haigh said.

“The digital economy was supposed to promise choice and flexibility, but the reality for too many in the sector is that they are overworked, underpaid and exploited by bosses they never meet and who do not even fulfil their basic duties as an employer.

“This ruling is the first step on the road but the government needs to act to ensure absolute clarity in the law. There is a danger that big companies will still try to duck their responsibility by exploiting legal loopholes or appealing this decision.

“That is why we have tabled an amendment to the Digital Economy Bill next week which, for the first time, will write into law the rights of workers like those at Uber to have the basic dignity of being an employee. I hope the government will now accept that amendment.”

New Clause 24 takes a direct approach to the issue, and states that “Where a business provides a digital service in which they act as an intermediary between labour suppliers and consumers where that service retains significant control over the service providers the labour suppliers shall be defined as employees of that business, as defined in section 230 of the Employment Rights Act 1996.”

The Government has yet to officially reply to the amendment.

Commenting on the Uber judgment, a spokesperson for the Department for Business, Energy, and Industrial Strategy said:

“The Government is committed to building an economy that works for all. We are keen to ensure our employment rules keep up to date to reflect new ways of working, and that’s why the Government has asked Matthew Taylor to conduct an independent review into modern working practices.”