Uber NZ 'disappointed' by Supreme Court ruling
New Zealand's Supreme Court has declared four Uber drivers to be employees as it dismissed the ride-sharing platform's appeal to recognise their employment status as independent contractors.
The Supreme Court ruled on Monday that factors pointing towards the employee status of the drivers outweighed the factors pointing away from it.
"The four drivers were therefore employees," the Supreme Court ruled.
It also unanimously found that there is no pre-trip contract between riders and drivers. Instead, Uber offers a rider the fare for the trip and the rider accepts that offer.
"Neither drivers nor riders can effectively select one another, and they are practically anonymous vis-à-vis one another throughout the entire transaction," the court's written summary of the decision read.
"Uber earns its revenues by charging riders for trips, and resolves any difficulties which might arise during each trip. A passenger could not reasonably be expected to think they were contracting with the driver when they got into the car."
The decision upholds previous rulings from the Court of Appeal and Employment Court, which both declared the four drivers in the case as employees of the ride-sharing platform.
Emma Foley, General Manager of Uber New Zealand, said they are "disappointed" by the court's decision.
"We are disappointed by the Court's decision, which casts significant doubt on contracting arrangements across New Zealand. Independent contracting is a cornerstone of not just Uber but also our broader economy — from tradespeople and creatives to IT consultants and health professionals — and hundreds of thousands of Kiwis value the freedom and control it provides," Foley told HRD in a statement.
"While the implications of this decision could be far-reaching, for now this decision relates to only four drivers and delivery partners, and Uber and Uber Eats will continue to operate as normal — continuing to provide tens of thousands of Kiwis with flexible work opportunities, as well as services to millions of people across the country."
Impact on employment reforms
The decision comes as the New Zealand government proposes major reforms to its Employment Relations Act, which will include a new gateway test to distinguish contractors in the country.
"Independent contracting is a cornerstone of not just Uber but also our broader economy — from tradespeople and creatives to IT consultants and health professionals — and hundreds of thousands of Kiwis value the freedom and control it provides," Foley said.
"This decision underscores the urgency of the government's proposed law reforms to provide workers and businesses the certainty they deserve when it comes to contracting arrangements."
But Workers First Union, which represented the four drivers, is using the Supreme Court's decision to call on the government to call off the reforms on the Employment Relations Amendment Bill.
"Workers First is now calling for the Government to halt Minister Brooke van Velden's 'Employment Relations Amendment Bill,' which intends to enshrine worker misclassification in law on behalf of companies like Uber," the union said in a statement.
