Uber is seeking to reverse a major legal setback by appealing to New Zealand’s Supreme Court, following two lower court defeats in a case that affirmed workplace protections for four drivers. The dispute, ongoing since 2022, has emerged as a key test of employment law in the platform economy.
Employment Court Grants Drivers Legal Entitlements
The original decision by the Employment Court granted the four drivers access to entitlements such as minimum wage, leave, and holiday pay—rights typically reserved for employees rather than independent contractors.
Uber had argued that the drivers were not employees but independent providers of transportation services who entered into contracts with riders and eaters using the company’s app.
Court of Appeal Upholds Drivers’ Employment Status
Uber first appealed the 2022 ruling, but in June 2023, the Court of Appeal dismissed the challenge, siding with the drivers. The judges concluded that the drivers were employees “at times when they were logged into the Uber driver app.”
Justices Goddard, Ellis, and Wylie emphasised that Uber maintained a high level of control over its drivers’ work. They noted that drivers had no opportunity to operate as independent businesses while using the platform.
“While logged into the Uber app,” the judges said, “drivers had no opportunity to establish any business goodwill of their own. Or to influence the quantity of work they receive, the quality of the work they receive, or their revenue from that work except to the extent that Uber agrees to give them some preference in relation to access to ride requests, information about rides, or supplementary payments.”
They further asserted: “We do not consider that drivers can, in reality, be said to be carrying on transport service businesses on their own account at times when they are logged into the driver app, providing services to riders referred to them by Uber for the remuneration determined by Uber, and subject to the high level of control and direction that Uber exercises over the provision of services by drivers while logged in.”
Supreme Court to Review Uber’s Classification of Drivers
Uber has taken its legal challenge to the Supreme Court after its appeal was dismissed. Although the ruling currently applies only to four drivers, it carries the potential to influence the classification of gig workers across the country. The ride hailing company maintains that it merely provides software and facilitation services, allowing drivers to independently connect with customers.
The company has consistently argued that this model does not create an employment relationship.
The stakes are high as the Uber case moves to the Supreme Court since the final ruling may influence how work is defined in New Zealand’s growing digital economy. It could determine whether gig workers—who earn income via apps like Uber—are entitled to the same workplace protections as traditional employees.