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Uber: Supreme Court Ruling
24 February 2021
Lead MP
Paul Scully
Debate Type
Ministerial Statement
Tags
Employment
Other Contributors: 25
At a Glance
Paul Scully raised concerns about uber: supreme court ruling in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Mr. Scully began by emphasising that everyone deserves fair treatment at work and adequate compensation for their contributions to the economy. He noted the Supreme Court's ruling in the Uber case, which affirmed that drivers are workers entitled to basic rights such as minimum wage and holiday pay. While acknowledging concerns about unclear employment status, Mr. Scully highlighted government measures such as extending the right to a written statement of core terms of employment for all workers, banning exclusivity contracts, and zero-hours contracts. He committed to further exploring options that protect workers' rights while maintaining labour market flexibility.
Andy McDonald
Lab
Middlesbrough and Thornaby East
Question
Mr. McDonald questioned Uber's attempts to interpret the Supreme Court ruling narrowly, leading to tens of thousands of workers being cheated out of their rights. He stressed that 5 million working adults were found to be in insecure work before the pandemic, urging the Government to legislate against fake self-employment and ensure security for gig economy workers.
Minister reply
Mr. Scully emphasised that Uber must adhere to the Supreme Court's judgment which is final. He also reiterated the government’s commitment to ensuring employment status clarity and protecting worker rights while maintaining flexibility.
Edward Leigh
Con
Gainsborough
Question
Mr. Leigh urged the Government not to take an Uber-friendly approach, recalling Conservative history of defending workers from exploitation, asking for a robust statement affirming that hard-working gig economy drivers should be fully employed and protected.
Minister reply
Mr. Scully acknowledged the valuable contribution of gig economy workers while highlighting the need to protect them adequately.
Stephen Flynn
SNP
Aberdeen South
Question
Mr. Flynn commended Mr. McDonald for securing the urgent question and highlighted concerns about the flexibility offered by the gig economy without adequate rights protections such as maternity leave, holidays, or sick leave. He expressed worries over a potential erosion of workers’ rights post-Brexit and urged the Government to confirm its support for the Supreme Court ruling.
Minister reply
Mr. Scully confirmed that the government recognises concerns about employment status clarity and exploitation risks, and will consider ACAS recommendations on fire-and-rehire practices.
Question
Mr. Collins questioned the interpretation of legal statuses by companies such as Uber, suggesting legislation to create a level playing field.
Minister reply
Mr. Scully emphasised the need for clarity on employment conditions but noted the complexity due to varying contracts across different gig economy firms.
Question
Mr. Amesbury echoed GMB's call for Uber to face up to its responsibilities, offering decent wages and holiday pay.
Minister reply
Mr. Scully stated that Uber must comply with the Supreme Court ruling while balancing flexibility in employment contracts.
Question
Does my hon. Friend agree that the UK has often led the way on workers’ rights internationally? What plans does he have to ensure that that continues?
Minister reply
My hon. Friend is absolutely right in terms of what we have done on workers’ rights. We want to make sure that employers, workers and the self-employed understand exactly what their status means and their tax protections, but we have a number of rights that stand up incredibly well in comparison with the EU and other countries around the world.
Zarah Sultana
Your Party
Coventry South
Question
The Court ruling has confirmed that taxis are a form of public transport, but they are the only ones to not receive coronavirus-specific funding. Will the Government urgently launch a sector-specific support package for taxis set at the same pro rata level as funding for the bus sector and applied retrospectively?
Minister reply
Some taxi drivers will be able to access the self-employed income status and other protections, and discretionary grants are available, but any further support will be outlined in the Budget next Wednesday.
Question
I welcome the Supreme Court judgment. Companies such as Uber can provide well-regarded flexibility, but they can also have staff retention problems globally. Does my hon. Friend agree that companies such as Uber should look at this judgment and, rather than try to find ways around it, look at what they can change that will, among other things, likely help them keep their people for longer?
Minister reply
My hon. Friend raises a really good point. It is important that no employer seeks to wriggle out of its responsibilities, and retention is a sensible approach for any responsible employer.
Wes Streeting
Lab
Ilford North
Question
Does not the Minister understand that these issues cannot just be left to the courts and that, in this David versus Goliath battle with big multinational companies that are exploiting workers, avoiding tax and flouting safety rules, people need to see the Government on their side? With that in mind, will the Government finally legislate to give gig economy workers the protection they deserve?
Minister reply
No, it has not been kicked down the road. We have taken a number of commitments through, including extending the right for a written statement of core terms of employment for all workers; quadrupling the maximum fine for employers who treat their workers badly; and closing a loophole that sees agency workers employed on cheaper rates than permanent workers.
Question
Does the Minister agree that encouraging people to be in an employment situation rather than a self-employment one wherever possible is the right thing to do? Will he work with the Treasury to finally amend the tax system so we do not give a perverse incentive for people to pretend that their staff are self-employed when they are really employed?
Minister reply
My hon. Friend raises a really important point, but it is a complex issue, and there is complexity to the background as well, so it is only right that we take the time to consider how best to achieve a change that works for everybody.
Janet Daby
Lab
Lewisham East
Question
The Government have previously pledged that they will bring forward an employment Bill to make the UK “the best place in the world to work.” If that is true, can the Minister tell us why we are yet to see a Bill—or has it been kicked down the road indefinitely?
Minister reply
No, it has not been kicked down the road. We are clear that any reforms we bring forward will be required to consider the needs of our labour market today. That is why we are continuing to work with stakeholders to understand the needs and challenges of modern workplaces.
Question
Does the Minister agree that Uber should pay its drivers more because that is good for those drivers but it is also good for the licensed taxi drivers who feel that they have been subjected to competition from Uber in recent years that is aggressive, unfair and predatory?
Minister reply
The people who drive black cabs —that premium product—do amazing work throughout; however, we must get the balance right between having a free market and making sure that the flexibility of the labour market is not impeded by any encroachment on workers’ rights.
Sarah Olney
Lib Dem
Richmond Park
Question
These contract conditions have been a feature of our economy for some time, which means that many thousands of workers have been illegally treated by companies such as Uber for years. Can the Minister tell me what the Government will be doing to ensure that those people are transferred to legal employment contracts and compensated for lost rights and benefits?
Minister reply
As I say, it is now for Uber to respond to that judgment. It must adhere to its legal responsibilities.
Mike Wood
Con
Kingswinford and South Staffordshire
Question
Flexible contracts can work well for some employees, but they must not be used by firms to avoid their responsibilities. Does my hon. Friend agree that all workers should have the right to request a more predictable contract, so that the balance of power does not lie exclusively with the employer?
Minister reply
As I said, we have extended the right to a written statement of core terms of employment to all workers, to make sure they understand the conditions they have and their status. We need to do more work in that area.
Justin Madders
Lab
Ellesmere Port and Bromborough
Question
It is a disgrace that people have had to fight court battles over four years to get basic employment rights, and the Minister must recognise that the only reason they have had to do so is that the Government have sat on their hands for too long. Will the Government finally recognise that the trade-off between flexibility and security is an illusion?
Minister reply
The gig economy offers individuals flexibility, and countless surveys have shown that the majority of people do like that flexibility—especially younger people and women.
Question
The many unsung heroes of the pandemic include bus drivers, delivery drivers and taxi drivers, with many of the latter often taking medical staff and patients to hospital and back. While the employment status of Uber drivers is a matter for the courts to determine, will my hon. Friend take this opportunity to thank them—and, indeed, all taxi drivers in Dudley North and beyond—for their efforts during these difficult times and for the risks they take?
Minister reply
I thank my hon. Friend, and join him in taking this opportunity to thank all the transport workers and taxi drivers—whether they are black cab drivers, private hire drivers, or indeed Uber drivers—who have been taking people around throughout all of this.
Question
My colleague and hon. Friend the Member for Glasgow South West (Chris Stephens) introduced a Bill to give gig economy workers the rights they have just won in court. This was ignored, as has been my Bill banning the Dickensian practice of fire and rehire, which both the Minister and the Prime Minister have termed unacceptable.
Minister reply
We will respond to the fire and rehire Bill when it actually comes through the parliamentary process, but ACAS has completed its work and shared its insights with officials at the Department for Business, Energy and Industrial Strategy.
Question
Following on from the previous question, I know that my hon. Friend shares the concerns felt across the House about the fire and rehire tactics some companies have pursued. While our flexible labour market is something to be cherished, does he agree that employers have a responsibility to do right by their workers, especially now?
Minister reply
My hon. Friend is absolutely right. It is sensible business to do right by employees, as well as the moral thing to do.
Stephen Doughty
Lab Co-op
Cardiff South and Penarth
Question
I draw attention to my entry in the Register of Members’ Financial Interests about my membership of the GMB, which drove this historic victory, along with others. I work closely with drivers in my constituency, many of whom are GMB and Unite members, and I want to praise the Welsh Labour Government for the support that they have given drivers in grants, support and free personal protective equipment during the covid crisis. However, many of the drivers tell me that although most taxi and private hire drivers charge on average £2.20 to £2.40 a mile, Uber pays only £1.10 to £1.25 a mile. Many drivers are getting into serious debt or even bankruptcy. What will the Minister do to ensure that drivers of Uber and beyond get a fair day’s pay from a fair day’s work?
Minister reply
We will make sure, first, that Uber complies with this judgment. Secondly, we also want to ensure that all employees—all workers—exactly know their rights and status, so that they can look at a number of the other taxi and hire firms available, should they so require.
Question
Ministers have been honest with the country that the Government cannot save every job as we emerge from the pandemic. We must ensure, however, that support is available for those who do find themselves out of work, so will the Minister confirm that the Government will prioritise making support and resources available to jobseekers as well as the provision of retraining for those who need it? How can we ensure that this is effective in very rural areas such as North Devon?
Minister reply
My hon. Friend is absolutely right. We talk a lot about reopening the economy, but the recovery of the economy is so important. That is why, although we have protected jobs, livelihoods and businesses, we must make sure that people coming back into work can flourish and have a course of self-development. That is why there are now a number of schemes available in Jobcentre Plus that are being rolled out to improve skills.
Bob Blackman
Con
Harrow East
Question
My hon. Friend will know that the private transport market is a market, and clearly the position of the iconic black taxi cabs in London and the rest of the private hire market have to be considered appropriately. I warmly welcome the decision on safeguarding Uber drivers’ rights, but will he look at doing a wholesale review of the market to ensure that Uber is not advantaged in it in an unfair manner that discriminates against black taxi drivers and the rest of the private hire market?
Minister reply
My hon. Friend is absolutely right to make sure that we continue to look at the number of private hire licences compared with black cab licences in London to ensure that there is no unfair advantage, but, ultimately, there is a market there, as he rightly says.
Question
We can judge this Government’s sincerity and their claims to care about workers’ rights by the fact that the Secretary of State is on record as saying that British workers are among the worst idlers in the world; of course, her own treatment of her staff would have got her sacked from almost any other job. Given that in just over two months the Scottish people will, for the sixth time in succession, elect a Scottish Government who care about the rights of workers, is it not time that employment legislation was delegated to the Scottish Parliament and the Scottish Government so that, at the very least, the workers of Scotland can get the government that they vote for?
Minister reply
I am afraid that the question just goes to show that the hon. Member is more interested in votes than jobs and workers’ rights. That is why the employment rights Bill will come before this House in due course.
Question
In Teesside, one of the myths that the Labour party is spreading about our freeport policy is on workers’ rights. Our Teesside freeport bid will create 18,000 new jobs over the next five years. Will the Minister confirm that, if our freeport bid is successful, there will be no downgrades in workers’ rights?
Minister reply
My hon. Friend is a real champion for the Teesside freeport, and he is absolutely right. We have talked a lot here about Uber and drivers, but our drive to ensure that we can have great workers’ rights in this country extends to all manner of employment, including the freeport that he describes and which I hope he gets.
Mary Foy
Lab
City of Durham
Question
With taxi drivers facing mounting debt and, tragically, recent reports of at least five suicides in the sector, including three mentioning financial worries in their suicide notes, does the Minister agree that drivers and operators need urgent access to extra financial support—including small business grants of £10,000, in line with other small businesses?
Minister reply
There is support for some drivers, although I appreciate that some people fall between the cracks. There is the self-employment scheme for some, discretionary grants are available, and each local authority has had to come up with a policy for how they used that money, which could include drivers. Any further support will be subject to the Chancellor’s announcement in the Budget next Wednesday.
Shadow Comment
Andy McDonald
Shadow Comment
Mr. McDonald praised the Supreme Court's ruling on Uber, which he saw as a victory for working people and against Uber’s claims of self-employment. He expressed concern that Uber was attempting to interpret the ruling narrowly and urged the Government to legislate to ensure all gig economy workers receive basic rights such as minimum wage and holiday pay.
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