A former Uber driver has successfully claimed over £20,000 in unpaid wages and holiday entitlements after an employment tribunal ruled that the gig economy giant had violated minimum wage and holiday benefit laws. James Farrar, who gained recognition for his landmark case against Uber that resulted in the acknowledgment of drivers’ broader employment rights, is just one of the 70,000 drivers who have reached settlements with the company. While Uber has not disclosed the total amount paid out, it had set aside £465 million for these settlements.
Farrar described the victory as a personal triumph but acknowledged the lack of morality in a market where Uber operates as a dominant force. His claim sought compensation for unpaid holiday time and ensuring his earnings met at least the minimum wage, including waiting time, as mandated by the Supreme Court’s 2021 ruling. After negotiating with Uber’s legal team, the company agreed to pay Farrar £22,960.85, and the employment judge AM Snelson ruled in Farrar’s favor.
Citing the numerous settlements involving gagging clauses, Uber confirmed Farrar’s case to be one among many. However, Farrar refused any settlement that would require him to sign a non-disclosure agreement. This victory marks his second legal win against Uber in the UK. In February 2021, the Supreme Court rejected Uber’s appeal against an employment tribunal ruling that recognized its drivers as workers entitled to minimum wage and paid holidays.
The Supreme Court’s decision paved the way for potential compensation payouts and improved terms for drivers. Notably, the ruling stated that drivers’ working time should be calculated from the moment they log on to the Uber app until they log off. Many drivers have successfully obtained compensation on this basis. However, Uber later redefined the start time as when a driver accepts a job, arguing that this change was necessary due to its revised terms in 2018, allowing drivers to utilize other platforms. As a result, Uber claimed it should not be held responsible for any period after 2018 when drivers were free to accept work from competitors’ apps.
Farrar pursued this case because, despite the Supreme Court ruling, he sought a judgment specifically holding Uber accountable for breaking the law in individual cases and ordering the reimbursement of lost wages. He also revealed that Uber had privately settled with thousands of drivers over the years to prevent these judgments from becoming public. Many drivers settled during the pandemic in 2020 when their incomes dried up and they were in desperate need of money.
Uber responded that the resolved claim pertained to an incident from seven years ago and did not reflect its current operations in the UK. The company highlighted that since 2021, all UK drivers have been guaranteed to earn at least the national living wage, with the potential to earn more, and receive holiday pay and a pension plan. Uber also expressed its ongoing collaboration with the GMB union, who represent drivers on the platform.
Recent financial reports show that Uber has set aside $600 million (£465 million) to address similar cases.
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