Thousands of drivers delivering for Amazon could be entitled to an average of £10,500 compensation for each year they have delivered for the company, according to law firm Leigh Day.

An individual doing paid work in the UK is either a worker, an employee, or self-employed. The differences in status determine pay and benefits, the type of contract they receive for completing the work, as well as the employment rights they are entitled to.

Currently, drivers making deliveries on behalf of Amazon via Amazon’s ‘Delivery Service Partners’ (DSPs) are classified as self-employed, so they don’t benefit from employee rights such as holiday pay, at least National Minimum Wage and an employment contract.

The law firm has launched an employee rights claim on behalf of drivers and believes that Amazon could owe drivers a total of £140m in compensation. It believes that at least 3,000 drivers could be able to claim for employee rights - because of the way Amazon dictates drivers’ work and how they fit into Amazon’s business, drivers are entitled to these rights.

Speaking to Leigh Day, drivers explained how they are given estimated timings between deliveries via an app, which they have to meet. Drivers also described how they are not able to bring parcels back to the depot so must use extra fuel to redeliver at the end of the day. This combined with charges for van rental, fuel and insurance can leave them with very little earnings.

As well as Amazon, Leigh Day is bringing similar claims against Uber, Addison Lee, delivery company Stuart and used vehicle marketplace BCA.

Kate Robinson, a solicitor in the employment team at Leigh Day, said:

“From what we have heard from our clients it appears that Amazon is short-changing drivers making deliveries on their behalf. This is disgraceful behaviour from a company that makes billions of pounds a year. Drivers delivering for Amazon have to work set shifts and book time off, yet Amazon claim they are self-employed. Paying out compensation of £140m sounds like a large bill to foot, but for a company that turned a profit of £5.8bn in the first three months of 2021, it’s a drop in the ocean. For drivers on the other hand, earning at least National Minimum Wage, getting holiday pay and being under a proper employment contract could be life changing. It’s time for Amazon to stop putting profit above people and give delivery drivers the employment rights they deserve.”