‘This ruling has huge implications for the whole of the UK labour market. Over the years, there has been a seemingly unstoppable trend towards much greater flexibility – evidenced by the increased use of zero hours contracts and the rise in the numbers of people becoming self-employed.
However, the distinction between whether somebody is self-employed or employed has largely been determined by cases going back many years, and this has failed to keep up-to-date with modern ways of working. This latest ruling could potentially bring the trend towards greater flexibility to a grinding halt.
‘I have no doubt that Uber will appeal this decision as it puts a huge dent in the company’s business model – as well as those of other businesses who use the self-employed workpool to give greater flexibility to their operations. It will be interesting to see whether this ruling is upheld in the higher courts - if it is, Uber passengers can expect their fares to be significantly higher.’