New Zealand’s Supreme Court has ruled that Uber drivers involved in a long-running legal dispute must be treated as employees, marking a major victory for workers’ rights and a potential turning point for the gig economy in the country.
The unanimous decision, delivered Monday in Wellington, upholds a 2022 Employment Court ruling that found four Uber drivers were employees rather than independent contractors. The case was brought by two unions on behalf of the drivers, who argued that Uber exerted significant control over their work, pay and conditions, News.Az reports, citing Reuters.
Uber, which appealed the earlier ruling, maintained that its drivers simply use its platform as independent contractors. But the Supreme Court rejected that argument, a move that could open the door to wider collective bargaining and expanded employment rights for thousands of drivers.
The Workers First Union welcomed the ruling, saying it “paves the way” for members to pursue full employment protections, including back pay and compensation for historic underpayment. The union said it will now move forward with collective bargaining efforts.
Uber expressed disappointment. Emma Foley, managing director for Uber Australia and New Zealand, said the ruling creates “significant doubt” about contracting models across the country. She noted, however, that the decision currently applies only to the four drivers involved in the case and stressed that Uber and Uber Eats will continue operating normally.
The Court of Appeal had previously upheld the workers’ position, noting that determining who qualifies as an employee has become increasingly important amid the fragmentation and globalisation of modern workforces. Judges described employment status as the “gate” through which workers must pass to access legal protections such as minimum wage, guaranteed work hours, holiday pay, parental leave and the right to file personal grievances.
The Supreme Court’s decision aligns New Zealand with several other countries, including the UK, where courts have already granted Uber drivers employee status.