Judge rules Addison Lee drivers are workers and entitled to backpay

A judge has ruled Addison Lee drivers are workers, entitling them to backdated compensation for holiday pay and loss of earnings.
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All Addison Lee drivers have officially been recognised as workers, following a significant ruling in a long-running dispute over employment status. Approximately 700 drivers, represented by lawyers from Leigh Day, sought proper recognition and argued that they were entitled to essential employment rights, such as holiday pay and the national minimum wage.

The case follows a 2017 Employment Tribunal judgment, which declared that three Addison Lee drivers were workers. Despite Addison Lee’s efforts to appeal the ruling, the judgment stood firm, bolstered by a 2021 Supreme Court decision that ruled in favour of Uber drivers in a similar case. In February 2024, an out-of-court settlement was reached with the original claimants, but Addison Lee maintained that the 2017 ruling did not apply to hundreds of other drivers who had since brought claims.

The Employment Tribunal has now confirmed that all Addison Lee drivers, including passenger drivers, courier drivers, and executive drivers, are workers whenever they are logged onto the company’s app or mobile device. Owner drivers are also considered workers from the moment they accept a job until its completion. The ruling further allows claims for holiday pay and the national minimum wage to be backdated beyond two years, meaning the compensation could be substantial for long-serving drivers.

Employment judge EJ Hyams criticised Addison Lee’s conduct during the hearing, finding that senior executives Bill Kelly, operations director, and Patrick Gallagher, chief operating officer, had falsified an email that was central to the company’s evidence. The judge also questioned the credibility of Kevin Valentine, head of delivery services, stating that his testimony was “dented” by inconsistencies. The Tribunal concluded that Addison Lee’s changes to its employment practices since 2017 were superficial and did not alter drivers’ worker status.

Liana Wood, employment solicitor at Leigh Day, expressed her satisfaction with the outcome, saying: “We are delighted that the Employment Tribunal has found in favour of Addison Lee drivers. This decision is of huge importance to drivers at Addison Lee who have been fighting for many years to be recognised as workers and to be paid properly for the work they do. We now urge Addison Lee to pay their drivers the compensation they are owed.”

Ryan Fowler

Ryan Fowler is Publisher of Workplace Journal

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