Amazon and Uber business models threatened by today’s employment rulings


In a ruling that many American delivery contractors will welcome coming up to the Christmas, the state attorney general said that settlement will mean that short-term workers will be entitled to receive pay in lieu of missed breaks due to, for example, heavy workloads, reports City AM.

The news comes on the day that a landmark ruling in London is expected on whether Uber drivers are entitled to take paid holiday and sick pay.

An employment tribunal is due to rule on whether Uber is acting within the law in not providing basic employment rights.

Drivers are independent, self-employed contractors rather than being directly employed by Uber, the firm said – its role is simply to connect supply (drivers) with demand (customers needing to get somewhere).

The tribunal will rule on two cases initially, paving the way for 17 further cases.

The rulings are likely to be closely monitored on both sides of the Atlantic by platform firms who use technology such as smart phones to provide flexible working to thousands of self-employed contractors.

This is the first such ruling in the UK involving Uber, although it has attempted to settle similar cases in the US.

“The financial implications are certainly staggering if they have to pay the minimum wage and provide other employment benefits,” employer lawyer Alex Mizzi of Howard Kennedy told the BBC.