Supreme Court rules Uber drivers are employees, raising concerns over worker choice and future of contracting

New Zealand’s Supreme Court has ruled that four Uber drivers who challenged their status are employees, not contractors.

The ruling applies only to the four drivers who brought the case, but it opens the door for thousands of contractors with a single dominant platform or employer to argue they are, in fact, employees entitled to minimum wage, guaranteed hours, paid leave, and the right to bring personal grievances.

The case stems from a 2022 Employment Court ruling. Uber appealed all the way to the top court, arguing its platform simply connects riders and independent drivers who run their own small businesses. The Supreme Court unanimously rejected that position, finding that in practice Uber “engages drivers to deliver passenger transport services” and exerts significant control over how those services are provided.

The court acknowledged drivers can choose their hours, work for competitors, and own their vehicles. But it said those freedoms were outweighed by the level of integration and control built into Uber’s systems, pricing, ratings, and performance management tools. It concluded that passengers “could not reasonably be expected to think they were contracting with the driver” rather than Uber itself.

Uber New Zealand said General manager Emma Foley said independent contracting is “a cornerstone” of the wider economy and valued by “hundreds of thousands of Kiwis” who rely on flexible work to fit around study, caregiving, or other jobs.

Centrist Ltd.