Are Uber drivers employees or contractors? Check what this Dutch court said

Tuesday’s decision overturns a 2021 decision by the Amsterdam District Court which had ruled that the legal relationship between Uber and its drivers met all of the characteristics of an employment contract

• Dutch court rules Uber drivers are independent contractors, not employees
• Labor union FNV plans to appeal and pursue cases for individual drivers
• Ruling overturns 2021 decision that classified Uber drivers as employees

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Dutch Uber Technologies Inc. drivers are independent contractors and not employees, the Amsterdam Court of Appeal ruled Tuesday in a long-running dispute between labor unions and the ride-hailing app.

The individual circumstances of Uber drivers differ too much to determine whether they should all be classed as employees, the court said in a statement. Labor union FNV had argued that drivers, as employees, should be paid according to the country’s Collective Labor Agreement for Taxi Transport.

The union said it’s “disappointed” by the outcome but “emphatically doesn’t see this as the end of the battle.” It plans to explore the possibility of appealing the court’s ruling and of initiating legal proceedings for individual drivers.

Tuesday’s decision overturns a 2021 decision by the Amsterdam District Court which had ruled that the legal relationship between Uber and its drivers met all of the characteristics of an employment contract. Uber had appealed the decision, saying the majority of drivers wished to remain independent.

The ruling confirms drivers’ “right to work independently and choose when, where and for how long they work,” an Uber spokesperson said in an emailed statement.

The case is one of several challenges the San Francisco-based ride hailing app and rivals including Deliveroo and Bolt Technology OU have faced to their business models in recent years. Labor unions in several European markets have argued for more stringent employment rights for the millions of delivery couriers and drivers who get work from the platforms, while the companies warn that stricter rules risk putting drivers out of work.

Some individual countries including the UK and Spain have already implemented tighter legal frameworks for gig economy workers. However, the European Union’s subsequent effort to regulate workers’ rights in the gig economy failed to get sufficient support, leading to a watered-down plan that kept the most important decisions in the hands of member states.

To determine the significance of entrepreneurship in defining an employment relationship, the Dutch Court of Appeal considered factors including the size of investments made by drivers, their freedom to choose their working hours, their strategy for accepting or rejecting rides, and the risk of liability and disability.