Uber NZ's appeal over drivers' employment status reaches Supreme Court

The ride-share giant says the case is 'an important step in providing clarity on how gig work fits into New Zealand's modern workforce'

Uber NZ's appeal over drivers' employment status reaches Supreme Court

Uber New Zealand's appeal over the employment status of four of its drivers will be heard in the Supreme Court on Tuesday.

The four Uber drivers were ruled as employees by the Employment Court in a landmark ruling in 2022, making them entitled to benefits such as leave entitlements, holiday pay, and minimum wage.

Uber NZ took the case to the Court of Appeal, which upheld the Employment Court's landmark decision, stating: "The real nature of the relationship between the four drivers and Uber was that the drivers were employees of the Uber companies at times when they were logged into the Uber driver app."

The ride-share giant is now in the Supreme Court in a bid to overturn the classification of the drivers.

"This week's Supreme Court hearing is an important step in providing clarity on how gig work fits into New Zealand's modern workforce," an Uber spokesperson told HRD.

According to the spokesperson, their focus is on protecting the flexibility and independence that their drivers and delivery partners value the most.

"Nine out of ten say they would stop earning with Uber if that flexibility were taken away. Many choose this kind of work because it allows them to earn on their own terms – wherever and whenever it suits them," the spokesperson added.

"Kiwis deserve modern ways of working that reflects how people live and work today – one that offers choice, autonomy and opportunity."

'A heroic stand'

The Employment Court ruling underscored that only four of the drivers named in the case are classified as Uber employees, stressing that it does not have jurisdiction to make broader declarations to include all the ride-hailing giant's drivers.

But the New Zealand Council of Trade Unions (NZCTU) believes that the Supreme Court's ruling will have lasting implications for Kiwis working in the platform economy.

Melissa Ansell-Bridges, NZCTU secretary, said the drivers in the case are "taking a heroic stand on behalf of all workers who have been misclassified as contractors."

"As a country we should be supporting Uber drivers in their fight against a multinational corporate that is trampling on their legal employment rights, not undermine them as this Government is doing," Ansell-Bridges said in a statement.

Nureddin Abdurahman, who was among the four drivers in the case, also disputed that Uber was protecting drivers' flexibility of work.

"For me from the moment I joined, and when I opened my app, it's Uber who gives me the job, and they decide the pricing – from where to go, from where to pick. I don't have any freedom on what that work looks like," Abdurahman said as quoted by Radio New Zealand.

Proposed gateway test

Uber's landmark case comes as the New Zealand government introduced to Parliament a proposed gateway test to provide greater clarity over the distinction between employment and contracting arrangements.

The test outlines four criteria that, if satisfied, will classify an individual as a contractor.

"This will provide greater certainty for all parties and will allow more innovative business models," said Workplace Relations and Safety Minister Brooke van Velden in a previous statement.

But the reform has been criticised by unions, who accused the government of making life "even more difficult for platform workers."

"Brooke van Velden is changing the law at the direction of Uber's lobbyists because they keep losing in the courts – it's a disgrace and shows why we need to get rid of this Government," Ansell-Bridges said.
 

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