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Does the Uber Ruling Threaten the Gig Economy?

Jim Riley

30th October 2016

It has been described as one of the most significant employment rulings for decades and it has major implications for firms operating in what is known as the "gig economy".

A landmark employment tribunal ruling means that Uber, the ride-hailing app, has lost the right to classify its drivers as self-employed.

Uber has around 40,000 drivers in the Uk alone, so you imagine the potential additional costs to Uber if it has to pay these drivers the national minimum wage and other employment-related benefits such as sickness and holiday pay. Uber would also have to pay national insurance tax on the payroll costs.

Not surprisingly Uber has said it will appeal a ruling which is significant to other technology businesses operating in the so-called "gig economy".

For Uber is not alone in relying the the services of self-employed suppliers. For example, most of the fast food delivery services such as Deliveroo use a similar system as Uber, as do many parcel courier firms.

UK Uber ruling leans to protect drivers

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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