Employment Tribunal Rules Bolt Drivers Are Workers
Employment Tribunal Rules Bolt Drivers Are ‘Workers’ and Entitled to Minimum Wage and Holiday Pay
In a landmark decision, an employment tribunal has ruled that Bolt drivers should be classified as ‘workers’ rather than self-employed contractors. This decision will require Bolt, a popular taxi-hailing app, to provide its drivers with essential worker benefits such as the national minimum wage and paid annual leave.
The Case
The case was brought by six Bolt drivers, representing thousands of others who argue that the work they do through Bolt's platform is not truly independent, but closer to a worker relationship. The drivers contended that, when they make themselves available for driving assignments, they meet the criteria for worker status, giving them rights to basic benefits and protections. Bolt, however, maintained that it acts merely as an agent for drivers, asserting that each driver is a self-employed contractor who independently controls their business.
Tribunal’s Key Findings
The tribunal rejected Bolt’s assertion that drivers operate as independent contractors and instead found that a ‘worker’ contract existed when drivers:
Operate within their licensed area,
Have the Bolt app switched on, and
Are available and ready to accept trip requests.
Citing the Uber BV v Aslam case, the tribunal reinforced the concept of a “mutuality of obligation” when a driver is ready to work, which qualifies as working under a worker contract. The tribunal further reasoned that Bolt’s ‘agency model’ does not change the drivers’ role or negate their entitlement to basic worker protections, including the national minimum wage.
Why This Decision Matters
This ruling impacts not only the six drivers but also up to 10,000 private hire drivers in the UK who could benefit from the decision. It may set a precedent, encouraging similar claims within the gig economy. The ruling also underscores the tribunal’s view that gig economy companies cannot sidestep providing worker protections by classifying drivers as contractors.
Perspectives on the Decision
Charlotte Pettman, a solicitor from Leigh Day who represented the claimants, stated, "This judgment confirms that gig economy operators cannot continue to falsely classify their workers as independent contractors…We call on Bolt to compensate our clients without further delay."
One of the drivers, Shuhel Ahmed, expressed relief and satisfaction over the decision, saying it validates the hard work and long hours put in by drivers and offers hope for improved pay and conditions.
Implications for the Gig Economy
The tribunal decision reflects a shift in the gig economy's regulatory landscape. The government’s review of contract workers may further clarify the rights of individuals working in the gig economy, potentially leading to more protections for those in similar roles.
This ruling also highlights how employment law is adapting to the unique structure of gig work. While differences exist between Bolt and other companies like Uber, the tribunal’s approach shows that each case is evaluated on its specific circumstances, yet the underlying principles of mutual obligation and worker rights are gaining traction.
Moving Forward
As Bolt prepares to respond to this ruling, it serves as a reminder for all gig economy platforms to review their employment practices and ensure they comply with evolving legal standards.
For any queries on employment rights or help navigating gig economy regulations, Lloyds Accountancy is here to provide support and guidance. Contact us today to learn more about how these changes might impact you or your business.
