Sep 27, 2018

Uber and CitySprint among gig economy firms to face parliament

Uber and courier firms including CitySprint are to be called to give evidence to a parliamentary inquiry into gig economy companies that have continued to deny workers employment rights despite tribunal rulings.

Frank Field MP, chair of the work and pensions committee, is to see if changes to legislation and enforcement are needed to ensure workers have their legal employment rights.

The new inquiry comes after a string of tribunal rulings against companies, including Uber, eCourier and CitySprint, which ruled that couriers and taxi drivers should be classified as workers and be entitled to holiday pay and the minimum wage. The companies failed to deliver those rights across their workforce, and argued that their drivers and riders were self-employed contractors.

"The inquiry will, I hope, shine a bright light on the extent to which justice is being evaded in the gig economy," said Field, who resigned the Labour whip late August. "We will be looking to suggest any immediate changes that are required, both to the law itself as well as its enforcement, to ensure no company is able to evade justice."

The inquiry launches as Uber continues to fight a 2016 tribunal ruling that said its drivers were workers and not self employed. The latest round is expected to be heard at the court of appeal late in October. Since the tribunal ruling Uber has offered some improved conditions for UK drivers, including limited insurance, limits on working hours and a 24-hour phone line for support.

Uber has repeatedly insisted that most of its drivers wanted to retain the flexibility to choose their own hours. However, the firm continues to face criticism over conditions. Couriers working for its Uber Eats takeaway delivery service this week protested outside the company’s London head office over a change in pay structure, which they said left them out of pocket.