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U.K. to Uber: Drivers Are Employees

A court ruling in the United Kingdom topples a pillar of the so-called gig economy: Uber's approach to employment.
November 12, 2017, 11am PST | James Brasuell | @CasualBrasuell
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"Uber suffered another setback in its biggest market outside the United States on Friday when an employment tribunal in London rejected the ride-hailing company’s argument that its drivers are self-employed," reports Prashant S. Rao.

The court decision, which affirmed a ruling last year, requires Uber "to ensure that its drivers in Britain receive a minimum wage and paid time off."  The ability to pay its driver as "independent contractors" is central to Uber's business model. According to Rao, London is a crucial theater for Uber's plans for global expansion. 

The court ruling is the second high-profile setback for Uber in London in recent months. Transport for London repealed the company's operating license in September.

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Published on Friday, November 10, 2017 in The New York Times
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