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Ride-hailing app Bolt has lost a legal challenge against classing its drivers as ‘workers’, in a ruling which could land the firm with a £200m bill and open the door to thousands of people gaining employment benefits from the company.
Some 10,000 current and former private hire drivers took the Estonian company to the Employment Tribunal seeking to be paid minimum wage and granted employment benefits.
However, Bolt resisted the claims, maintaining that the drivers do not quality as ‘workers’ and its contract with them is for self-employed independent contractors.
This is the latest case over the status of gig-economy workers for Bolt after a hearing at the Tribunal in September.
At the latest hearing today, the judge had to address whether the drivers were ‘workers’ within the meaning of the National Minimum Wage Act, and, if the drivers are ‘workers’, during what periods under this Act.
A judgement was handed down this morning, which saw the Tribunal rule that the Bolt drivers represented are not self-employed contractors who run their own business, as Bolt claimed.
Lawyers for the claimants believe the compensation owed to their clients could be worth more than £200m.
Instead, the terms and conditions that Bolt applies to the drivers’ relationship with the company, and the control that the firm has over the drivers’ work, means that they are workers, the court ruled.
Being defined as a ‘worker’, the drivers will be entitled to workers’ rights and protection under employment law.
Another hearing is expected to take place as early as next year, when the Employment Tribunal will decide how much compensation for unpaid holiday pay and lost income each driver will receive.
While this decision stands, Bolt may also try and appeal this ruling, which has yet to be decided.
In a similar issue back in 2021, the UK Supreme Court ruled that Uber drivers are workers and not self-employed contractors.
A Bolt spokesperson said: “Drivers are at the heart of what we do, and we have always supported the overwhelming majority’s choice to remain self-employed independent contractors, protecting their flexibility, personal control, and earning potential..”
“We will continue to engage with drivers as we carefully review our options, including grounds for appeal, ensuring that we are helping drivers to succeed as entrepreneurs and grow on their own terms,” they added.