Four drivers have won their battle against Uber to be treated as employees rather than contractors.

The Supreme Court has rejected Uber’s bid for the court to overturn a 2024 Court of Appeal ruling that found the drivers were employees.

The multinational ride-sharing company did not believe it needed to give drivers the rights afforded to employees, such as the minimum wage, leave entitlements and KiwiSaver contributions.

It argued the flexibility enjoyed by drivers, who can choose their hours, work for competitors, control their expenses and maximise incentives offered by Uber, made them contractors.

The contractor model is fundamental to Uber’s business.

However, all five Supreme Court judges who heard Uber’s appeal in July, ruled the drivers were really employees.

Three agreed with the rationale of the Court of Appeal and Employment Court; two arrived at this conclusion for other reasons.

The ruling technically only applies to the four drivers, represented in court by E tū and First Union.

The way it affects other Uber drivers in New Zealand is yet to be seen.

The ruling could influence the way the law is applied to those in the gig economy in the future.

Confusion over the distinction had prompted the Government to change the law to codify how what constitutes being an “employee” versus a “contractor” is applied.

It is proposing to classify a worker as a contractor when there is a written agreement that specifies the worker:

• is an independent contractor.
• is not restricted from working for others.
• is not required to be available to work certain times or days or for a minimum period.
• is able to sub-contract the work; and the business does not terminate the arrangement for not accepting an additional task.

The Employment Relations Amendment Bill had its first reading in Parliament in June. Members of the Education and Workforce select committee have considered public submissions on it, and will publish a report on it before Christmas.

The Supreme Court considered Uber’s case under the existing law.

More to come.

Jenée Tibshraeny is the Herald’s Wellington business editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.