Private hire firm Addison Lee will not be permitted to appeal an Employment Tribunal’s decision that drivers are entitled to workers’ rights, the Court of Appeal has ruled.

The decision was made in light of the recent Supreme Court judgment stating that Uber drivers are entitled to receive the National Minimum Wage and holiday pay. Addison Lee’s appeal to the Court of Appeal had been put on hold in anticipation of the Supreme Court judgment.

Over the last few years there has been considerable blurring of the lines between different types of employment status, and the definition of 'employee' and 'worker' differs slightly from one area of legislation to another. The growth of the ‘gig economy’ – made up of short-term contracts and flexible working as opposed to long-term contracts – has only added to the confusion. Employment Tribunals sometimes agree that workers are employees, and therefore entitled to benefits, and vice versa.

Already, an Employment Tribunal in 2017 had found that a group of Addison Lee drivers were workers. This was upheld by the Employment Appeal Tribunal in 2018. Law firm Leigh Day, which represents more than 100 Addison Lee drivers, believes thousands of drivers could be entitled to an average of £10,000 in compensation.

The private hire company, which provides services for well-known clients such as ITV, Sky and the BBC, will only be legally required to compensate those who have brought a claim.

Liana Wood, a solicitor in the employment team at Leigh Day, said:

“This is a huge decision in favour of Addison Lee drivers and yet another blow to big firms operating in the gig economy. Leigh Day has been fighting for workers’ rights on behalf of our clients for several years, so I’m delighted that the end is now finally in sight for these hard-working drivers who deserve to be treated fairly.

“This decision follows hot on the heels of the landmark Uber judgment in the Supreme Court. We hope that other companies with similar business models to Uber and Addison Lee recognise that they cannot continue to deny people basic rights such as holiday pay and the national minimum wage.”

In another case being heard this week, two drivers from Northampton-based Bounds Taxis will present evidence to an Employment Tribunal to establish their own right to be defined as ‘workers’. Shafqat Shah and Samuel Adjei will argue that they are being denied the right to a minimum wage, holiday pay and rest breaks.