Judge rules hundreds of Addison Lee private hire drivers ARE workers and should receive backpay
Addison Lee drivers have been officially classified as workers, following a significant tribunal ruling that has opened the door to backdated compensation claims for holiday pay and loss of earnings.
The decision stems from a case involving around 700 drivers, represented by Leigh Day solicitors, who argued that they were workers rather than independent contractors. This classification means they are entitled to employment rights, including holiday pay and the national minimum wage.
The dispute first gained traction in 2017 when the Employment Tribunal ruled that three Addison Lee drivers were workers. That decision set a precedent, though Addison Lee contested it. However, their appeals were hindered by the Supreme Court’s landmark 2021 ruling on Uber drivers, which supported similar claims for worker status.
In February 2024, Addison Lee settled out of court with the original three drivers, but argued that the judgment should not apply to others bringing similar cases.
Leigh Day presented its case at an Employment Tribunal in late 2024, leading to the decisive ruling that all Addison Lee drivers, including passenger, courier, and executive drivers, are workers during the time they are logged onto the company’s app or device. Owner-drivers, meanwhile, are considered workers from the moment they accept a job until its completion. Crucially, claims for holiday pay and national minimum wage can be backdated beyond two years.
This latest ruling also addressed Addison Lee’s operational changes since 2017, stating that they were superficial and did not alter the drivers’ worker status. Leigh Day’s legal team has indicated that the compensation for affected drivers could be significant, particularly for those with lengthy service histories.
This outcome is expected to have widespread implications for employment practices in the gig economy, reinforcing the rights of drivers working under similar conditions. Addison Lee has yet to comment on the ruling.
Liana Wood, Leigh Day employment solicitor, said: “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 their drivers the compensation they are owed.”
