Uber drivers to be classed as workers after landmark employment decision

A London employment tribunal has ruled against ride-sharing company Uber in a landmark case which will see the firm's drivers classed as full-time workers rather than self-employed.

The case was brought to the courts by two Uber drivers, and will leave the company vulnerable to employment law as its 40,000 workers will now be entitled to paid breaks and holidays, as well as the national minimum wage.

The tribunal's decision also has further-reaching ramifications for those companies taking advantage of the so-called "gig economy".

Uber has grown rapidly in popularity as an alternative form of transport in cities throughout Britain and abroad, but the company will now have to rethink its attitude towards employees in the wake of the decision.

"..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," the tribunal's verdict read.

Uber has argued that it essentially works "for" a group of self-employed drivers, something that the tribunal decided was not the case with a series of arguments, such as the fact it interviews and recruits drivers.

Tom McPhail, Head of Retirement Policy at Hargreaves Lansdown, has said that the decision could hurt Uber.

"This is great news for anyone working in the gig economy as it means they are more likely to be eligible for a workplace pension, with all the attendant benefits and in particular the highly valuable employer contribution," McPhail said.

"It is also going to be a challenge for Uber and employers like them, in deciding what specific pension terms they want to offer their employees," he added.

"They have some latitude on earnings definitions and deferral periods but however they deal with this, it is going to cost them time and money."