The Supreme Court of New Zealand has unanimously thrown out Uber’s appeal against treating its drivers as employees, ending a three-year legal battle and affirming that the ride-sharing company’s drivers are not independent contractors.

The decision stems from a 2022 case where four Uber drivers successfully argued in the Employment Court that they should be classified as employees, making them entitled to benefits like leave entitlements, holiday pay and a minimum wage. Uber’s subsequent appeals were rejected by the Court of Appeal in 2024 and now the Supreme Court on Monday 17 November.

A written summary of the court’s decision highlighted the practical relationship between the company and its riders: “Uber offers a rider the fare for the trip and the rider accepts that offer. Neither drivers nor riders can effectively select one another, and they are practically anonymous vis-à-vis one another throughout the entire transaction,” the summary stated.

“Uber earns its revenues by charging riders for trips, and resolves any difficulties which might arise during each trip. A passenger could not reasonably be expected to think they were contracting with the driver when they got into the car.”

Workers First Union, which represented the drivers, alongside E t?, celebrated the outcome. Deputy secretary Anita Rosentreter said, “It hasn’t been easy, but it has absolutely been worth it.”

Rosentreter called on Minister of Workplace Relations and Safety, Brooke van Velden, to withdraw her Employment Relations Amendment Bill, which seeks to prevent specified contractors from challenging their employment status.

She stated: “It would show maturity from Brooke van Velden if she were to take a moment to reflect on the Supreme Court’s judgement and consider that New Zealanders will not accept exploitation under the illusion of ‘flexibility’ or ‘certainty’.”

She further told Checkpoint that the union would now pursue compensation for the drivers: “We’re going back and calculating exactly what Uber would owe drivers if they had paid them at least the minimum wage, whatever it was at the time, and given them annual leave and so on... The fact of the matter is that could be upwards of $100,000 NZD per driver, we don’t know exactly what it’s going to be.”

Nureddin Abdurahman, one of the drivers involved and now a Wellington City Councillor, said: “It’s a relief, and I always knew this was the right decision.”

Abdurahman stressed that the Supreme Court’s ruling should influence politicians considering the proposed amendment Bill: “This is the highest court in the country, in this land, the Supreme Court making a decision, and the politicians are going around and finding a way to support a multinational [corporation]... I don’t think so,” he said.

“Now they have to make a decision whether they stand on the side of the working people or they stand with the multinational.”

In response, Uber general manager for New Zealand, Emma Foley, expressed disappointment but stated that the company will continue to operate as normal for now.

“Independent contracting is a cornerstone of not just Uber but also our broader economy - from tradespeople and creatives to IT consultants and health profes-sionals - and hundreds of thousands of Kiwis value the freedom and control it provides,” she said.

“While the implications of this decision could be far reaching, for now this decision relates to only four drivers and delivery partners, and Uber and Uber Eats will continue to operate as normal.”

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