An employment tribunal has ruled all drivers employed by private hire car and courier firm Addison Lee should be classified as workers and entitled to rights and backdated compensation for holiday pay and loss of earnings.
While a 2017 employment tribunal ruled that three Addison Lee drivers were workers and were entitled to holiday pay and the national minimum wage, the firm attempted to appeal. This was dismissed, after a 2021 Supreme Court ruling in favour of Uber drivers, and an out-of-court settlement was reached in February 2024. Addison Lee then tried to argue that the 2017 judgment did not apply to drivers who have since brought similar claims.
Around 700 drivers, who were represented by law firm Leigh Day, argued that they are not self-employed independent contractors during to a hearing in October and November 2024.
The tribunal ruled that all passenger, courier and executive drivers are working for Addison Lee during all times they are logged onto its app or mobile device, owner drivers are working from the time they have accepted work to the time the work ends, and holiday pay and national minimum wage claims can go back more than two years, with compensation likely to be substantial for drivers with long service.
Employment judge EJ Hyams was critical of the conduct of Addison Lee’s witnesses, stating that several senior employees acted improperly in falsifying an email that was a key part of its evidence. It was noted that the changes the firm has made since the 2017 judgment did not make any impact to drivers’ worker status.
An Addison Lee spokesperson said: “We are disappointed by the decision of the employment tribunal. We are currently considering options, including the right to appeal.”
Liana Wood, employment solicitor at Leigh Day, added: “We are delighted that the employment tribunal has found in favour of Addison Lee drivers. This decision is of huge importance to drivers at Addison Lee who have been fighting for many years to be recognised as workers and to be paid properly for the work they do. We now urge Addison Lee to pay [its] drivers the compensation they are owed.”
