Established London minicab firm Addison Lee has lost a tribunal which now entitles its drivers workers rights.
New rights include a minimum wage and holiday pay, plus it also shifts the onus on VAT back to the employer.
The law firm representing the drivers said “This judgment acknowledges the central contribution that Addison Lee’s drivers have made to the success of the company by confirming that its drivers are not self-employed,” Addison Lee are yet to respond to the results of the hearing.
This case is also a huge blow for its rivals Uber. The American ride hailing company are appealing a similar ruling and are due in court later this week.
The higher costs associated with workers rights could mean a severe change in both firms business models. It also has implications surrounding VAT which companies currently pass on to self-employed drivers. This would cease immediately and the employee would be responsible for such payments.