Adam Smith Inst - Time to update employment law
Sam Dumitriu, Research Economist at the Adam Smith Institute commented on the news that Uber have lost their employment tribunal appeal and that Uber drivers will be classified as workers and entitled to sick pay, holiday pay and the minimum wage
“Uber drivers choose to use the app because they want the freedom to pick when they work and which trips to take. Granting drivers worker status may force Uber to schedule shifts and cut pay at peak times, leading to less choice for drivers and longer wait-times for consumers."
"It may also discourage rivals to Uber, like Lyft and Taxify, from coming to the UK hurting competition."
"This ruling reveals the problem of relying on employment legislation written before the word 'app' even existed. Minicab drivers have been traditionally classified as self-employed, but drivers who are able to choose their own hours, trips and simultaneously use a rival app are now classified as workers. We should update the law to take into account the added flexibility that gig economy platforms like Uber bring."
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