A union representing private hire drivers has claimed a significant victory in a court case that has clarified the legal status of ride-hailing services and their drivers.
The APP Drivers and Couriers Union (ADCU) said a case brought by Uber, in which it had intervened, had ended 47 years of regulatory misclassification that denied minicab drivers their rights as workers.
Last week Uber secured a High Court ruling that licensed operators in England who accept a booking are required to enter as principal into a contract with the passenger and should therefore pay 20% VAT on their margins.
This followed a 2021 ruling in a case brought by the ADCU against Uber under separate legislation covering London, which forced Uber to contract directly with passengers, helping to confirm drivers as workers with statutory protections and making Uber liable for VAT.
The new case, Uber Britannia Ltd (UBL) v Sefton Metropolitan Borough Council, related to Part II of the Local Government (Miscellaneous Provisions) Act 1976, under which Uber is licensed by 52 authorities, including Sefton. Sixty-nine other private hire operators are similarly licensed by Sefton under the Act.
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