Uber’s Business Model Faces Threat After Legal Setback Across Europe

© REUTERS / GONZALO FUENTESA photo Illustration shows the Uber application on a mobile phone in in central Paris, France March 5, 2020.
A photo Illustration shows the Uber application on a mobile phone in in central Paris, France March 5, 2020. - Sputnik International, 1920, 21.09.2021
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Uber’s business model component is derived from flexible drivers that have the freedom of working flexible hours, but are not recognized as regular employees.
Uber faces the risk of losing its core business model to Europe’s judges.
Courts across Europe are deciding on the status of the ride-hailing app and its drivers, with thousands of drivers pushing to be recognized as employees.
The company has affirmed that all drivers on its platform are classified as independent contractors — not employees. Drivers are deprived of workers' compensation for accidents, and are not entitled to unemployment insurance along with health benefits.
The Uber logo is displayed on a mobile phone in this picture illustration taken November 25, 2019.  - Sputnik International, 1920, 17.03.2021
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Uber has faced various legal proceedings across the world wherein authorities belonging to different legal fields have argued that the drivers should be qualified as employees.
For example, in the UK, the Employment Tribunal ruled that drivers cannot be considered self-employed, but rather regular workers.
Similarly, in Switzerland, the SUVA qualified Uber drivers on behalf of the Social Security Agency of the Canton of Zurich, Switzerland in May 2016, as employees.
Last week, Uber lost another legal challenge in Europe over the employment status of drivers. The Court of Amsterdam in the Netherlands ruled that drivers for Uber should be classified as employees, rather than self-employed contractors — and are entitled to greater workers’ rights under local labor laws.
Uber drivers in the Netherlands are now entitled to the same employment benefits as taxi drivers.
It was another court victory for unions fighting for better pay and benefits for those employees seeking working time protection and holiday pay.
More than 100 similar court cases are progressing all over Europe, with the majority of cases taking the side of drivers.
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