Leigh Day Lawyers have announced on their website that a judge ruled all Addison Lee drivers should be classified as workers, following a historic case brought by hundreds of drivers who are now entitled to workers' rights and backdated compensation for holiday pay and loss of earnings.

About 700 drivers, represented by lawyers from Leigh Day argued that they are workers, rather than self-employed independent contractors.

In 2017, the Employment Tribunal ruled that three Addison Lee drivers were workers, entitling them to rights such as holiday pay and the national minimum wage.

Addison Lee’s attempt to appeal this ruling was dismissed, after a 2021 Supreme Court ruling in favour of Uber drivers in a similar claim. In February 2024, an out of court settlement was reached with the three drivers.

Addison Lee then tried to argue that the 2017 judgment did not apply to the hundreds of drivers who have since brought similar claims.

Leigh Day brought its arguments to a hearing at the Employment Tribunal in October and November 2024.

The Tribunal has now ruled that:

All Addison Lee drivers are workers for Addison Lee

All passenger drivers, courier drivers and executive drivers are working for Addison Lee during all times they are logged onto Addison Lee’s app or mobile device

Owner drivers are working for Addison Lee from the time they have accepted work to the time the work ends

Claims for holiday pay and national minimum wage can go back more than two years

Lawyers from Leigh Day’s employment team say the holiday pay and national minimum wage compensation will be substantial for many drivers who have a long service working for Addison Lee.

The Tribunal also found that the changes Addison Lee had made since the 2017 judgment “paid lip service only” and so did not make any impact to drivers’ worker status.

Employment Judge EJ Hyams was critical of the conduct of Addison Lee’s witnesses, concluding that Bill Kelly, Operations Director and Patrick Gallagher, a board level director and Chief Operating Officer, acted improperly in falsifying an email that was a key part of the firm’s evidence.

The judge also concluded that the credibility of Kevin Valentine, Addison Lee’s Head of Delivery Services was “dented”.

Leigh Day employment solicitor Liana Wood 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.”

Dave Lawrie, Director of NPHTA said: " Before we get the usual suspects claiming that this is about VAT, or applies to ALL private hire operators, let's just clear up any misunderstanding.

"Addison Lee operates in much the same way as Uber - collecting payment for all fares and then paying the driver - this is why they are subject to the same judgment as in the GMB employment case against Uber.

"This ruling has zero impact on the traditional way in which many private hire operators continue to work, where the driver is paid the fare directly from the customer."

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