BBC: Ruling potentially gives UK Bolt drivers key benefits
A landmark ruling entitles UK drivers with Estonian-founded ride-hailing app Bolt to be classified as workers rather than as self-employed service providers, which may pave the way to benefits such as holiday pay and a minimum wage, the BBC reported.
Thousands of drivers are affected by the ruling, lawyers say, and total compensation could come to over £200 million (around €240 million).
The BBC reported that Bolt has said it is reviewing its options, including grounds for appeal, and noted that the U.K. employment tribunal findings concerned only those service providers who were not on multiple ride-hailing apps – i.e., who solely used the Bolt app to find customers.
A 2021 U.K. Supreme Court ruling found that drivers with Bolt competitor Uber qualified as workers, meaning they were due rights like holiday pay and a minimum wage.
Trade union GMB has said the Bolt ruling extends these rights further still.
Around 15,000 current and former Bolt drivers filed a legal case at a London employment tribunal, claiming under U.K. law they were formally employees.
Bolt has said it has "always supported" the "choice" of drivers "to remain self-employed independent contractors," but the tribunal rejected this, dismissing the notion of driver agency and labeling the driver-passenger contract as a legal workaround.
The BBC called the ruling a significant development for the "gig economy" and said it affects potentially around 100,000 drivers.
Bolt has said nine out of 10 drivers use multiple apps when seeking out customers, and not just Bolt's own.
Bolt was founded in 2013 as Taxify and initially provided ride-hailing services, later expanding to other services including food couriering, e-scooter, and car rentals. It is one of around a dozen Estonian "unicorn" firms.
Bolt: Drivers form the heart of our activity
Commenting on the developments, Bolt told ERR News: "Drivers are at the heart of what we do, and we have always supported the overwhelming majority's choice to remain self-employed independent contractors, protecting their flexibility, personal control, and earning potential."
"We will continue to engage with drivers as we carefully review our options, including grounds for appeal, ensuring that we are helping drivers to succeed as entrepreneurs and grow on their own terms," a Bolt spokesperson went on.
Bolt also noted that the claimants in the U.K. lawsuit, taken out by law firm Leigh Day, made up less than 10 percent of the total who use Bolt's platform to provide services.
Bolt also said that the £200 million compensation sum mentioned was purely speculative, and that the company has introduced a journey fee, holiday pay supplements and a flexible pension scheme for its U.K. works, to enhance drivers' financial security while maintaining their independence as entrepreneurs.
Bolt said a survey found drivers value flexible hours most and that this and other aspects such as unique dynamic and custom pricing options – in the latter case allowing drivers to set their own minimum journey fees – were overwhelmingly facets of a self-employed independent contracting model.
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Editor: Andrew Whyte
Source: BBC