Taxi and PHV operator Veezu remains ‘CONFIDENT’ their ‘driver partners’ status is lawful
Updated: Sep 17, 2023
National private hire vehicle operator Veezu remain ‘confident’ that their position on ‘driver partners’ is lawful despite the threat of future claims.
According to law firm Leigh Day, thousands of taxi and private hire drivers working for Veezu could be entitled to significant compensation after being allegedly denied holiday pay and the National Minimum Wage.
The claims have prompted legal action on behalf of Veezu drivers, arguing that they should be classified as workers and afforded the corresponding employment rights and protections.
Veezu, which owns over a dozen local taxi companies operating under various brand names, currently treats its drivers as self-employed contractors. However, drivers contest this classification, highlighting the way Veezu operates, including assigning jobs, setting rates, and penalising drivers for rejecting jobs. They argue that these conditions meet the criteria for worker status under employment law.
A spokesperson for Veezu responded to the claims, maintaining that its drivers are properly classified. A statement read: "We have not received any formal notice about these claims, and we are confident that our position on the status of the driver partners operating via Veezu is lawful."
This legal action against Veezu mirrors an ongoing worker status claim brought against another ride-hailing company, Bolt, by Leigh Day. Given the similarities in the working arrangements of Bolt and Veezu drivers, Leigh Day believes there is a strong case for the classification of Veezu drivers as workers. If successful, these drivers would be entitled to compensation for withheld holiday pay and any discrepancies in their earnings compared to the National Minimum Wage.
The recent Supreme Court ruling in favour of Uber drivers represented by Leigh Day is seen to have set an important precedent for this case. The court ruled that Uber drivers should be classified as workers and granted corresponding workers' rights.
Veezu has acquired numerous local taxi firms throughout England and Wales and operates under several brand names, each having its own smartphone booking app. The list includes Dragon Taxis, V Cars, SN1 Cars, Go Carz, A2B Radio Cars, Amber Cars, City Taxis, Excel Taxis, Britannia Taxis, ABC Taxis, and Panther Taxis.
If successful, the compensation claims against Veezu would only apply to those drivers who brought a claim. Leigh Day is representing the drivers under a 'no win no fee' agreement, ensuring that drivers will not incur any expenses unless their claim proves successful. This legal challenge highlights the ongoing debate surrounding worker status and employment rights in the rapidly evolving gig economy.
