Addison Lee Drivers Ruled 'Workers'

Addison Lee has lost its claim at the Employment Appeal Tribunal (EAT) that its drivers were self-employed. The ruling confirms that drivers must be paid the national minimum wage and receive holiday pay.

Employment Status and the Gig Economy

The EAT upheld a previous decision that Addison Lee’s taxi and courier drivers are workers, not self-employed contractors. This aligns with similar findings against companies such as Uber and Hermes.

The judgment could impact thousands of other gig economy workers, according to the GMB union, which called it a “huge win for workers’ rights”. “Other employers should take note – GMB will not stop pursuing these exploitative companies,” said Sue Harris, the union’s legal director.

Key Findings of the EAT

• The EAT rejected Addison Lee’s claim that drivers were running independent businesses due to unrealistic terms and conditions imposed by the company.
• Addison Lee provided induction, training and documentation (Driver Operating Guide), demonstrating significant control over drivers’ work.
• Only one of the 4,000 drivers was an owner-driver; the rest hired vehicles in the company’s livery.
• Contracts required drivers to agree they were independent contractors, despite the substantive day-to-day relationship indicating otherwise.

The level of control — including uniform requirements and branded vehicles — has been a recurrent theme in determining employment status cases.

“What we would hope is that this ruling puts pressure on the firm to change its practices.” – Liana Wood, Leigh Day

Industry Impact and Next Steps

Employment partner Stefan Martin of Hogan Lovells said the decision serves as “a reminder that, regardless of the legalese in contracts, courts look at the substance of the relationship to determine workers’ rights.”

Addison Lee stated: “We note the appeal verdict, which we will carefully review. Addison Lee is disappointed with the ruling as we enjoy a positive relationship with the vast majority of our 3,800 driver partners. In common with most of the industry, the majority are self-employed, and with earnings at a record high.”

Earlier this week, it was revealed that some of Addison Lee’s clients have put the company under pressure to reform its working practices in line with the United Nations Global Compact.

The company can appeal the decision at the Court of Appeal.

Read the full article on Workers of England