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New Zealand’s Supreme Court on Monday dismissed Uber’s appeal in Rasier Operations v E Tū Incorporated, holding that rideshare drivers are employees, not independent contractors. The decision grants drivers access to minimum wage protections, paid leave, and collective bargaining rights.
The Supreme Court found that rideshare drivers must be considered employees under the Employment Relations Act of 2000, specifically citing Section 6 of the Act, which requires that courts determine “the real nature of the relationship” beyond contractual labels. Following its decision in 2005 case Bryson v Three Foot Six Ltd, the court examined traditional common law tests for employment, including control, integration, and whether workers operate businesses on their own account.
Monday’s ruling described Uber’s contractual language as “window-dressing” designed to disguise an employment relationship. Despite contractual provisions which expressly describe drivers as independent contractors, the court found Uber supplies passenger transport services and engages drivers to deliver them in an employment context.
The decision focused on extensive mechanisms of control used by Uber, including unilateral disciplinary power, algorithmic fare-setting, GPS tracking, and performance monitoring through ratings systems. The court noted that Uber’s rating system effectively functions as an internal management tool.
The court rejected Uber’s characterization of itself as merely facilitating driver-passenger contracts, instead finding that passengers contract with Uber for transport services, not with individual drivers.
The decision marked the latest development in a series of litigation dating back to 2022 and clarified that contracts which may not explicitly define an employment relationship may still constitute an employment contract when accounting for a totality of circumstances.
Similar litigation has occurred internationally as well. In 2023, a US appellate court held that Uber drivers are subject to employment contract arbitration clauses. In 2020, Brazil’s Superior Court of Justice held that Uber drivers are independent contractors, rather than employees.
The post New Zealand Supreme Court rules Uber drivers are employees appeared first on JURIST - News.
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The Supreme Court found that rideshare drivers must be considered employees under the Employment Relations Act of 2000, specifically citing Section 6 of the Act, which requires that courts determine “the real nature of the relationship” beyond contractual labels. Following its decision in 2005 case Bryson v Three Foot Six Ltd, the court examined traditional common law tests for employment, including control, integration, and whether workers operate businesses on their own account.
Monday’s ruling described Uber’s contractual language as “window-dressing” designed to disguise an employment relationship. Despite contractual provisions which expressly describe drivers as independent contractors, the court found Uber supplies passenger transport services and engages drivers to deliver them in an employment context.
The decision focused on extensive mechanisms of control used by Uber, including unilateral disciplinary power, algorithmic fare-setting, GPS tracking, and performance monitoring through ratings systems. The court noted that Uber’s rating system effectively functions as an internal management tool.
The court rejected Uber’s characterization of itself as merely facilitating driver-passenger contracts, instead finding that passengers contract with Uber for transport services, not with individual drivers.
The decision marked the latest development in a series of litigation dating back to 2022 and clarified that contracts which may not explicitly define an employment relationship may still constitute an employment contract when accounting for a totality of circumstances.
Similar litigation has occurred internationally as well. In 2023, a US appellate court held that Uber drivers are subject to employment contract arbitration clauses. In 2020, Brazil’s Superior Court of Justice held that Uber drivers are independent contractors, rather than employees.
The post New Zealand Supreme Court rules Uber drivers are employees appeared first on JURIST - News.
Continue reading...
Note: We don't have any responsibilities about this news. Its been posted here by Feed Reader and we had no controls and checking on it. And because News posted here will be deleted automatically after 21 days, threads are closed so that no one spend time to post and discuss here. You can always check the source and discuss in their site.