An employment tribunal has ruled in favour of more than 900 Addison Lee drivers on how their compensation and working time should be calculated.
The judgment determines the principles used to calculate how much compensation drivers are owed.
Two claimants gave evidence on behalf of drivers who had taken substantial breaks during the Covid-19 pandemic due to health concerns or a lack of available work. The tribunal rejected Addison Lee’s argument that the gaps should curtail claims and found that claim periods continued throughout the breaks, including periods of up to 11 months. This means drivers are likely to be able to claim compensation.
The tribunal also backed the drivers’ position on how their working time should be assessed. Addison Lee argued that the time drivers spend logged into the app waiting for jobs should not count as working time, but the tribunal ruled it should count, except when drivers remained logged in after finishing a shift.
The judgment also confirmed drivers are entitled to 5.6 weeks of paid holiday per year and payment for this when they leave if it was not taken, and that drivers are paid on a weekly basis.
The tribunal also confirmed that newer claims can be combined with existing ones, drivers will receive interest at 8% per year on holiday pay compensation owed, and agreed with their approach on how fuel costs should be calculated.
Lawyers at Leigh Day estimated that drivers’ total compensation is likely to exceed £20 million.
The tribunal previously ruled in January 2025 that drivers are entitled to workers’ rights such as holiday pay and minimum wage. An appeal hearing is listed for January 2027.
Liana Wood, employment solicitor at law firm Leigh Day, which represents the drivers, said: “This is an excellent result for Addison Lee drivers who have succeeded on almost every significant issue before the tribunal. The judgment recognises the reality of the work these drivers carried out over many years and ensures they will be properly compensated for unpaid holiday and national minimum wage.
“It is particularly important that the tribunal confirmed drivers’ claims were not broken by the Covid-19 pandemic, meaning many can recover compensation for their full periods of work. We look forward to finally securing the compensation our clients are owed.”
Addison Lee was contacted for comment prior to publication.
