A tribunal ruled all Addison Lee employees are workers and entitled to holiday pay backdated as well as compensation for lost earnings.
Around 700 drivers presented their claims at an October and November 2024 hearing, arguing they were workers and not self-employed contractors and entitled to rights like holiday pay and national minimum wage.
The ruling came after a 2017 ruling that three Addison Lee driver were employees and a 2021 appeal that was dismissed.
In 2021, the Supreme Court made a landmark decision that Uber drivers are workers. The three drivers of Addison Lee then reached an out-of court settlement.
The tribunal ruled in the latest case that all executive and passenger drivers work for the company when they log onto the app or mobile device.
The law states that owner drivers work from the moment they accept a job until the end of the work.
You can claim holiday pay, and any underpayments of minimum wage or national minimum wage for up to two years.
EJ Hyams, the Employment Judge, was critical of Addison Lee witnesses. He stated that Bill Kelly, the operations director, and Patrick Gallagher – a director at board level and chief operating officer – acted in an improper manner by falsifying a email which was a crucial part of the firm’s evidence.
The ruling also found the company only “paid lip-service” to changing worker entitlements after the 2017 judgement, so that workers’ status didn’t really change.
In a driver’s agreement, for example, it was stated that drivers were free to refuse a job. However, in practice this was frowned upon. Emails were presented as proof suggesting a “three strike rule be replaced with a one strike rule” when turning down jobs.
The court added that “while the respondent stated in the driver agreement, drivers are free to refuse a job but that adds nothing
Material because drivers could always refuse a job. It was about the possible or actual sanctions.”
Liana Wood, an employment lawyer at Leigh Day who represented the drivers in the case, said that the decision had “huge significance” for those who brought it.
She stated that they “fought for many years for recognition as workers and for being paid appropriately for the work they perform.” Now we urge Addison Lee, to pay the drivers what they are owed.
Subscribe to our weekly HR news and guidance
Every Wednesday, receive the Personnel Today Direct newsletter.
Addison Lee’s spokesperson said: “We regret the decision of employment tribunal.” We are currently evaluating our options, which include the right to appeal.
