A London Private Hire Gig-Economy Behemoth Falls…Or Does it?

Addison Lee’s appeal against drivers being classed workers gets stopped dead in its tracks. The judge cites Uber’s failure at The Supreme Court as evidence of the pointlessness of taking their appeal any further.

Last month, Uber’s final chance at Appeal was refused at The Supreme Court – the highest court in the land. In my report on Uber, I outlined that even though this is a big deal in terms of legislature, it remains to be seen whether HMRC or employment tribunals will come to collect what they are owed.

Uber drivers are owed £10,000s. But Uber isn’t going to make getting the money easy. Drivers will need to file a claim to get what they are owed. Uber’s is like a bank with a ‘free money’ sign, except with a dragon guarding the front.

Some thought this case meant the fall of the gig economy. Others considered it a symbolic fall of a company likely to use its tech-savvy and wealth to shapeshift back into its old ways.

But things are changing slowly, and we have cause to be cautiously optimistic.

Is The Gig Economy Changing?

After Uber’s reluctance to admit the effect of The Supreme Court decision on their business, boss Dara Khosrowshahi made a public statement. He announced that drivers will now receive holiday pay, pension contributions and the National Living Wage. The announcement missed a few significant points of The Supreme Court judgement, sending a message that Uber still does what it wants. But it was a start.

Now, something infinitely more interesting has happened.

Another company that engages workers in the gig economy, Addison Lee, has been tarred by the courts’ same brush. Addison Lee is a giant London minicab firm with a corporate face that many wouldn’t associate with tech companies like Uber, Bolt and Deliveroo. However, it turns out that they engage drivers in a somewhat similar way to their silicon valley counterparts.

Addison Lee is, by most definitions, a ‘traditional’ private hire company. However, the court case still centred around their use of an app. Lord Justice Bean, for one, doesn’t think there is much of a difference in how Addison Lee and Uber drivers are treated.

In 2017, three Addison Lee drivers; Mr Lange, Mr Olszewski and Mr Morahan, took Addison Lee to an employment tribunal. They believed that they were workers and should be paid for the entirety of the time they were logged onto Addison Lee’s driver platform. They were successful.

Major Precedents Are Being Set – Gig Workers Should Be Paid From The Moment They Log Into The App
Should other gig economy companies make changes before it’s too late?

Readers of my last article or those knowledgeable about the case will know that part of Lord Leggatt’s final judgement in the Uber case was that Uber drivers should be paid from the second that they log into the app and are available to take jobs.

Addison Lee appealed the decision, but the judgement was upheld by The Employment Appeal Tribunal. Addison Lee was then given permission to appeal the ruling. Addison Lee would have presumably, if unsuccessful again, followed Uber’s path to The Court Of Appeals and finally to The Supreme Court.

Lord Justice Bean believes Uber’s failure on similar grounds means there is no longer a reasonable prospect of success in overturning the decision. Because of this, Addison Lee has had their application for appeal dismissed. Law firm Leigh Day, which represents more than 100 Addison Lee drivers, believes thousands of drivers could be entitled to tens of thousands.

Just like with the Uber case, it should be mentioned that compensation will only be given if drivers take action to bring a claim.

Addison Lee will likely offer a solution to drivers similar to the landmark ‘employment plus’ offered by Hermes in conjunction with the GMB and Uber’s compromise, as mentioned above. The sentiment from the Uber drivers responsible for the original claim was happiness and victory, but time will tell how many drivers from both Uber and Addison Lee will come and collect.
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