Paris, Sep 13 (Bureau) Uber Technologies Inc. lost another lawsuit over drivers’ rights after Amsterdam District Court ruled on Monday that Uber drivers in the Netherlands, previously considered self-employed, fall under the action of local collective labor law and therefore must be employed on a permanent basis. The lawsuit against Uber was filed in court by the Federation of Dutch Trade Unions (FNV), which insisted that under the company’s hiring scheme most drivers were being paid below minimum wage.
“The legal relationship between Uber and the drivers meets all the standards of an employment contract … This decision means that Uber is obliged to enter into a collective agreement with drivers,” the court ruling said. In addition, the court ordered Uber to pay compensation to the FNV in the amount of 50,000 euros ($59,000) for non-compliance with the Collective Labor Agreement.
In February, Uber lost a lawsuit over the rights of its employees in the British Supreme Court. Uber drivers were considered to be independent contractors. According to the court’s decision, the company had to register all drivers as employees, not as contractors, which guarantees drivers the official minimum wage and paid holidays. Uber Technologies Inc. provides ride-hailing services in more than a hundred cities around the world, receiving a commission from drivers in the amount of 20% from each call and considering all drivers on its platform independent contractors, the reason for various lawsuits by trade unions in various countries.