Uber Drivers Given 'Employee' Status by Top French Court in a Blow to the Company

The Cour de Cassation upheld a previous decision by a court of appeal.

Advertisement
By Reuters | Updated: 5 March 2020 08:47 IST
Highlights
  • An Uber driver was considered as an employee by the court
  • Uber might be required to pay more taxes and benefits now
  • It could also have ramifications for the wider "gig economy"

Decision could pave the way for othes to ask for reclassification of their work relationship with Uber

France's top court has recognised the right of an Uber driver to be considered an employee, a ruling that could upend the US firm's business model and potentially require it to pay more taxes and benefits such as paid holidays. The decision by the Cour de Cassation could also have ramifications for France's wider "gig economy", as other taxi and food delivery apps from Deliveroo and Just Eat-Takeaway to UberEats rely heavily on self-employed riders to conduct their business without having to meet a range of employee costs and benefits.

The Cour de Cassation upheld a previous decision by a court of appeal, saying the Uber driver could not qualify as a self-employed contractor because he could not build his own clientele or set his own prices, making him a subordinate of the company.

"When connecting to the Uber digital platform, a relationship of subordination is established between the driver and the company," the court said in a statement.

Advertisement

"Hence, the driver does not provide services as a self-employed person, but as an employee."

Advertisement

The decision could pave the way for other drivers to ask for a reclassification of their work relationship with Uber, which, under the current framework, does not pay a wide range of taxes that fund France's welfare system.

"It's an entirely different business model (for Uber)," said Cédric Jacquelet, a partner at Proskauer law firm in Paris.

Advertisement

"It requires much more legal and human resources, at a much higher price," he added, saying that Uber might now review the conditions under which its drivers perform their service so that they can no longer claim to be employees.

The decision also follows a series of legal challenges to Uber and similar companies from Brazil to Colombia and the United States itself.

Advertisement

California, where Uber is based, recently passed a law aimed making it harder for apps to classify their workers as independent contractors rather than employees..

"The ruling does not reflect the reasons why drivers choose to use Uber: the independence and freedom to work if, when and where they want," Uber said in a written statement.

"Over the last two years we've made many changes to give drivers even more control over how they use Uber, alongside stronger social protections," it added, noting the court's decision would not lead to an automatic reclassification of drivers.

© Thomson Reuters 2020

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Uber, France
Advertisement

Related Stories

Popular Mobile Brands
  1. Realme 15T 5G India Launch Today: All You Need to Know
  2. Oppo Enco Buds 3 Pro Available for Purchase in India: See Price, Offers
  3. Your Gmail Password Might Have Been Leaked: How to Secure Your Account
  4. Amazon Great Indian Festival Sale: Deals on Smartphones, Laptops Teased
  5. Motorola Razr 60, Buds Loop With Swarovski Crystals Debut in India
  1. BCCI Says Crypto, Real Money Gaming Platforms Can’t Bid for Team India’s Title Sponsorship
  2. Scientists Discover Hidden Mantle Layer Beneath the Himalayas Challenging Century-Old Theory
  3. Astronomers Propose Rectangular Telescope to Hunt Earth-Like Planets
  4. Microsoft Testing Native Clipboard Sync Feature to Share Text Between Windows PCs, Android Devices
  5. Su From So OTT Release: When and Where to Watch This Kannada-Language Horror-Comedy Online
  6. Sennheiser Momentum 4 Wireless 80th Anniversary Edition Launched in India With Up to 60 Hour Battery Life
  7. Call of Duty Film Adaption Said to Be a 'Priority' at Paramount, Negotiations on to Acquire Rights
  8. Cannibal Solar Storm May Trigger Auroras as Powerful Geomagnetic Storm to Hit Earth Soon
  9. Apple's iPhone 8 Plus Listed as Vintage Product Ahead of iPhone 17 Launch, 11-Inch MacBook Air Now Obsolete
  10. Hidden Reason Behind Portugal’s Deadly Earthquakes Finally Explained
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.