Taxi firm Addison Lee loses appeal against drivers earning national minimum wage and holiday pay

Taxi firm Addison Lee lost its appeal against an employment tribunal decision today, which found that drivers were not self-employed contractors running their own businesses but in fact employees of the taxi company.

The Employment Appeal Tribunal (EAT) upheld the Employment Tribunal’s September 2017 ruling that drivers were entitled to receive the national minimum wage and holiday pay.

The tribunal also upheld a claim that the terms and conditions drivers had to sign did not reflect what was agreed, and that drivers were working for Addison Lee from the time they logged on to the company's app to the time they logged off.

The decision comes as ride-hailing rival Uber waits for a judgement from the Court of Appeal as it attempts to overturn a similar ruling.

Liana Wood, solicitor at law firm Leigh Day, representing three drivers who brought the claims against the taxi firm, said: “We are very pleased that the EAT has rejected Addison Lee’s appeal.

“It is clear that Addison Lee’s business model of providing a fleet of highly trained, regulated drivers is incompatible with their arguments that drivers are not workers who are entitled to workers’ fundamental rights.

“We hope that Addison Lee will accept this decision; drivers shouldn't have to continue to work very long hours, often in excess of 60 hours per week, to earn just enough to meet their basic living costs.”

A spokesperson for Addison Lee said: “We note the appeal verdict, which we will carefully review. Addison Lee is disappointed with the ruling as we enjoy a positive relationship with the vast majority of our 3,800 driver partners.

“In common with most of the industry, the majority are self-employed, and with earnings at a record high, over 60 per cent said they were likely or very likely to recommend working for Addison Lee in our most recent driver satisfaction survey.”