Lior Samfiru on the future of Uber after U.K Supreme Court ruling

The future of Uber in the U.K has been irreversibly changed as the Supreme Court has ruled to classify drivers as employees and not independent contractors. This landmark ruling could have significant influence over the company globally and potentially indicate how other lawsuits against the service will end.

Lior Samfiru, an employment lawyer, co-founding partner at Samfiru Tumarkin LLP and co-counsel in Heller v. Uber Technologies joins Jill Bennett on 980 CKNW to discuss the ruling and ongoing class-action suit.

What They Discussed

What does the ruling in the U.K Supreme Court mean for Uber?

This ruling was not surprising and it is a relief for many Uber drivers. Any other ruling at the moment seems illogical considering how Uber has chosen to operate and control its drivers. This ruling could potentially indicate that the same decision will be made regarding Uber drivers globally in the future.

Has Uber made significant changes to how it operates since 2016?

In Canada, this does not seem to be the case. In fact, it seems there are more requirements for Uber drivers in Canada and more control and penalties imposed on drivers.

What classifies an individual as an independent contractor as opposed to an employee?

Uber has stated they simply connect consumers with its drivers. However, Uber dictates how much drivers make, which routes they are allowed to take and pays its drivers. This level of control indicates that drivers are not independent and cannot make their own choices and so are employees not contractors.

What are the complaints of Uber drivers in Ontario that have led to the class-action lawsuit?

Uber drivers in Ontario are aware that classification as an employee would entitle them to rights they currently are not receiving such as minimum wage, vacation pay, termination and severance pay, etc. Drivers state if Uber wants to classify them as independent contractors they should be given the freedom to actually work independently.

Are there Uber drivers who are happy to be classified as independent contractors and not employees?

There are Uber drivers who are happy to be classified as independent contractors however employment law dictates what classifications are given to individuals.

What are the ramifications for Uber drivers if they are considered employees?

There are tax implications for Uber drivers if they are considered employees. However, because many Uber drivers are currently filing their taxes as independent contractors, if they are ever audited by CRA there could be fines and penalties imposed as they are actually employees.

If Uber drivers were ever audited, who would pay the penalties?

Both Uber and the drivers would potentially be liable and have to pay back considerable tax deductions, fines, etc.

Will the U.K Supreme Court’s Uber ruling influence the class-action against Uber in Ontario?

While the U.K Supreme Court’s ruling is not binding in terms of a Canadian ruling, it is very pervasive as the court and laws are very similar.