21 November, 2017
In the latest twist to the Uber story the Transport for London (TfL) have refused Uber a new private hire license deeming them not fit and proper to hold that license.
The reason was a perceived lack of corporate responsibility with potential public safety and security implications. While this decision may well be subject to an appeal, it follows close on the examination of their business model and methods by the Employment Tribunal that recently ruled that Uber drivers engaged on a contractor basis are entitled to the employment rights of workers not self-employed independent contractor with no rights.
It shows the authorities increasingly examining the business models of organisations such as Uber and Deliveroo and looking at their legal framework into which these business models must fit and an examination of the rights and obligations between workers and those who engage with them.
The story is far from finished but another step towards the examination of these new business models and how they fit inside the law.
It reminds all businesses that calling a person a contractor is not definite as the Employment Tribunal look at all the facts and circumstances in deciding the nature of the contract relationship and rights and obligation of each party.