UBER Uber Technologies Inc

   By Mauro Orru 
 

Uber Technologies Inc.'s legal relationship with its drivers meets all the criteria of an employment contract, a Dutch court ruled Monday in the latest development in the global debate over how gig-economy companies should treat their workers.

The Amsterdam District Court said its decision means the ride-hailing platform is obliged to class its drivers under the country's collective labor agreement for taxi transportation, which enshrines more rights in the event of dismissal or illness.

The decision also means Uber drivers will be entitled to higher pay, according to labor union FNV, which brought the case against Uber last year, citing concerns over drivers' wages and rights.

"Real self-employed workers can determine their own rate and determine how they carry out their work. This is not the case with drivers who drive for Uber," said FNV Vice President Zakaria Boufangacha, adding that Uber determines its drivers' hourly rates.

Uber plans to appeal the ruling, a company spokesperson said. "Nothing will change for drivers who use the app," they said. Uber doesn't have plans to employ drivers in the Netherlands, the spokesperson said.

The ruling allows some drivers to retroactively claim wages. Uber was also ordered to pay 50,000 euros ($59,053) in compensation to the union for failing to comply with the labor agreement.

Earlier this year, the company said it would grant its U.K. drivers an employment status entitling them to vacation pay and pension contributions after the Supreme Court ruled that a group of former Uber drivers were entitled to certain employment rights.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

September 13, 2021 08:10 ET (12:10 GMT)

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