Uber drivers in the Netherlands are effectively under an employment contract, a Dutch court ruled on Monday, in a fresh blow for the US ride-hailing giant’s gig economic model.
The judgment was handed down in a case brought by a Dutch union and comes months after a similar UK court ruling on Uber drivers’ rights forced the American firm to sign a world-first union deal in Britain.
“The legal relationship between Uber and these drivers meets all the characteristics of an employment contract,” and drivers are covered by a collective labour agreement for taxi drivers, the Amsterdam District Court said in a statement.
“This means that Uber is obligated to institute a labour contract with drivers… and therefore means these drivers are entitled to backpay in certain circumstances,” the court said.
The judges also ordered Uber to pay a fine of €50,000 for failing to implement the terms of the labour agreement for taxi drivers.
Dutch labour union FNV took Uber to court in December, saying that taxi drivers and Uber shared a labour agreement and Uber drivers often earned less than the minimum wage.
Uber said it would appeal the ruling
“We are disappointed with this decision because we know that the overwhelming majority of drivers wish to remain independent,” Maurits Schoenfeld, Uber’s Northern Europe general manager, said in a statement.
“Drivers don’t want to give up their freedom to choose if, when and where to work.”
Uber in March in a world first said it was granting its 70,000 British drivers worker status, with benefits including a minimum wage, following a Supreme Court ruling.
