Uber Drivers Recognized as Employees by NZ Supreme Court

In a landmark ruling that could reshape the gig economy, New Zealand’s Supreme Court has declared four Uber drivers to be employees, rejecting the company’s long-standing claim that its drivers are independent contractors. The decision closes a long legal battle that began in 2022 and marks a turning point for workers across the country.

Uber New Zealand, which has around 11,000 drivers, had argued that its platform simply connects drivers with passengers and that it does not provide transport services directly. The company also maintained that drivers control their schedules, work for other platforms, and operate their own businesses.

However, the Supreme Court unanimously dismissed these arguments. Judges emphasized that passengers reasonably expect they are contracting with Uber itself when taking a ride. The court found that despite drivers having some flexibility, factors such as Uber’s control over fares, driver integration into the platform, and lack of ability to grow independent businesses outweighed the factors pointing away from employee status.

This ruling confirms that workers in similar contract arrangements may have the right to claim employee status, unlocking access to protections such as minimum wage, rest and meal breaks, holidays, parental leave, and the ability to raise grievances.

The decision follows earlier rulings by the Employment and Appeal Courts, which had both recognized the importance of employment status in safeguarding workers’ rights. Experts suggest this could trigger changes across New Zealand’s gig economy, potentially affecting not only rideshare drivers but also delivery and other platform-based workers.

Uber expressed disappointment, noting that the ruling “casts significant doubt on contracting arrangements” and highlighted ongoing debates over employment flexibility versus worker protection in the country.