New Zealand’s Supreme Court has delivered a landmark ruling that Uber drivers involved in a legal challenge should be classified as employees rather than independent contractors. The unanimous decision, issued on Monday, November 17, dismissed Uber’s appeal against a 2022 Employment Court ruling, which originally determined that four specific Uber drivers qualified as employees. The case was initiated by two unions representing these drivers.

Uber had long argued that its drivers are independent contractors, merely using its platform. However, the top court’s decision directly challenges this model and could reshape the rights of Uber drivers in New Zealand, aligning the country with precedents established in nations like the United Kingdom where courts have recognized rideshare drivers as employees.

The Workers First Union praised the ruling, stating it “paves the way for thousands of members to pursue full employment rights, including restitution for historic underpayment of wages and entitlements.” The union also confirmed plans to advance collective bargaining as a direct result of the judgment.

In response, Emma Foley, managing director of Uber Australia & New Zealand, expressed the company’s disappointment, emphasizing that the decision “casts significant doubt on contracting arrangements across New Zealand.” She added that “for now, this decision relates to only four drivers and delivery partners, and Uber and Uber Eats will continue to operate as normal.”

Prior to the Supreme Court’s ruling, Uber’s appeal had been rejected by the Court of Appeal, whose judges highlighted the growing importance of employment status amid the “fragmentation, casualisation, and globalisation of workforces in New Zealand.” The judges noted that employment status serves as the gateway for workers to access statutory entitlements, including minimum wage, paid leave, parental leave, bereavement leave, rest breaks, and the ability to pursue personal grievances. This Supreme Court decision solidifies access to these rights for the Uber drivers involved in the case.