Skip to main content

Insight article

May 30, 2021

It’s a status thing!

Earlier this year, the Supreme Court upheld the decision of the Employment Tribunal in Uber B.V -v- Aslam & Others; confirming that Uber drivers are workers.

This case highlights the importance of properly identifying the employment status of individuals to know what employment rights will apply.

Why does employment status matter?

The development of the gig economy, in which individuals are engaged by businesses on a flexible and ad hoc basis, has caused problems in determining employment status.

In employment law, the distinction between the three categories of employment status (employee, worker and self-employed independent contractor) is significant for many reasons.

Some core legal protections apply only to employees, significantly the right not to be unfairly dismissed and the right to receive a statutory redundancy payment.

Workers, though, are covered by some important protections too. For instance, workers are entitled to:

Uber B.V -v- Aslam & Others

The key deciding factor in this decision was the degree of subordination and control that Uber drivers were subjected to.

When passing judgment, Lord Leggatt stated that worker status was a question of statutory interpretation rather than contractual interpretation.

This means that it does not matter what name the parties give to their working arrangement. It is the factual day-to-day practice of that arrangement which is the key to interpreting how the law will define it.

Lord Leggatt surmised that the legislation is there to protect vulnerable individuals who are in a position of subordination and dependence on another person who controls their work. Therefore, where there is a greater degree of control, it is likely that the individual will be a worker rather than self-employed.

The subordination and control exercised by Uber manifested itself in several ways.

  1. the drivers’ pay was fixed by Uber and the contractual terms under which drivers performed their services was also controlled by Uber. Flagging Uber drivers as workers, as the self-employed can set their own fees and contractual terms; and
  2. once Uber drivers logged into the app, they had little choice in accepting rides. Uber could penalise drivers based on their trip cancellation rate, demonstrating the drivers’ subordination to Uber.

The effect of this decision and the importance placed on the purpose of the legislation demonstrates that the courts should look to protect workers, irrespective of any signed contractual documents.

This emphasises the Supreme Court’s decision in Autoclenz Limited v Belcher, which made clear that tribunals should look at the substance of any contract and not just its form.

“Employers would be wise to review the arrangements in place regarding their exposure to worker status claims and the financial consequences of a successful claim.”

Many employers will state on an employment contract that an individual is self-employed for various reasons. However, the court will look at the actual relationship between the parties and the whole context of that relationship, not just the contract itself.

Speak to Karen Cole today, who can review the reality of the working arrangement and what rights and protections will apply.

Note: This is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • Employer warning as immigration raids hit record high 
    Employers are being urged to review their recruitment procedures after new figures revealed that immigration enforcement raids have reached record levels across the UK.


    Read more
  • Planning for the future: What to include in a UK shareholders’ agreement
    A well-drafted agreement sets clear ground rules for how the company is run, how decisions are made, and what happens when circumstances change.


    Read more
  • Understanding Court of Protection applications in England and Wales
    When someone can no longer make decisions for themselves and has not put a Lasting Power of Attorney in place, the Court of Protection can step in. This article explains what the Court of Protection does, when an application may be needed, and what t


    Read more
  • Warranties and indemnities: Key protections in share and asset sales
    An overview of warranties and indemnities in share and asset sales, explaining key differences, common protections, liability limits and risk allocation.


    Read more
  • The Employment Rights Act is a call to action for employers 
    A new year, a new employment framework: what employers need to know about the Employment Rights Act passed by parliament in December 2025.


    Read more

What they say...

  • Laura Kelly, February 2026
    Review of legal guidance received “I recently worked with Patrick Simpson on my settlement agreement. Patrick guided me through every stage with exceptional care and diligence. He kept the process moving efficiently, always updating me promptly

  • Prasanna Sooriakumaran, February 2026
    “Really good, especially at dealing with the company that tried to overplay their hand. I highly recommend.”

  • Sharla Munian, February 2026
    Outstanding Legal Support and a Brilliant Result “I cannot recommend RIAA Barker Gillette highly enough. My solicitor supported me throughout a very challenging property litigation matter, and thanks to her expertise, dedication, and strategic

  • Client, February 2026
    Very good service in disagreement with architect “RIAA assisted me in a conflict I had with my architect, who wanted to overcharge me. The end result was satisfactory, with invoices reasonable despite being slightly higher than expected!”

  • Sharla Munian, February 2026
    Outstanding Solicitor Who Delivered the Outcome I Hoped For “After a number of years navigating a complex financial settlement following my separation, my solicitor has been incredible from start to finish. Their professionalism, patience, and

Read more
Send this to a friend