Kiwi Uber drivers win employee status in Supreme Court decision

The Supreme Court has ruled that Uber drivers are employees, rejecting the company's final appeal and confirming earlier decisions that found in favour of workers seeking employment protections. The unanimous ruling enables thousands of current and former drivers to seek arrears, holiday pay and other entitlements previously unavailable to them as contractors.

Employment status

The case involved four drivers supported by Workers First and E tū, who argued that the degree of control exercised by Uber over pay, access to work and performance conditions amounted to an employment relationship. The Court agreed, concluding that "factors pointing away from employee status are outweighed by those pointing towards it".

Unions say the judgment strengthens the position of gig-economy workers who have long argued that platform control over pricing, performance expectations and customer management indicates an employer–employee relationship. They view the decision as a precedent for thousands of drivers who may now pursue backdated rights and join collective bargaining.

Uber said the ruling raises broader concerns. Emma Foley, General Manager of Uber New Zealand, said the decision "casts significant doubt on contracting arrangements across New Zealand", describing independent contracting as a "cornerstone" of both Uber's model and the wider economy. She argued that contracting gives people "freedom and control", which many workers value.

Prolonged legal process

The dispute began in 2021, progressing through the Employment Court and Court of Appeal before reaching the Supreme Court. Claimants argued that while drivers could choose when to log in to the app, Uber ultimately controlled key aspects of the work, including fares and service standards.

Anita Rosentreter, Deputy Secretary of Workers First Union, said the case required sustained commitment. "The four drivers who first took Uber to court in 2021 over their misclassification have endured a four-year saga but stayed strong and united throughout. It hasn't been easy, but it has absolutely been worth it." The claimants included Nureddin Abdurahman, Julian Ang, Bill Rama and Lalogafau Mea'ole Keil.

Uber emphasised that the ruling applies only to these four individuals. Foley said that "for now this decision relates to only four drivers and delivery partners, and Uber and Uber Eats will continue to operate as normal".

Drivers' reactions

Abdurahman said the decision confirmed what drivers had argued for years. "It's such a relief. We always knew what was right and it has finally been confirmed by the Court. This is justice served after a long fight." He added that public support had been strong throughout the process.

Keil said he was "ecstatic" and hoped the decision would help improve conditions for future generations. "This was for our kids, for our grandkids, and everyone else in society who deserves a better future at work."

Government response

The ruling has intensified debate around the government's proposed Employment Relations Amendment Bill. Unions argue the Bill would restrict the ability of workers to challenge their employment status by introducing a "gateway" test before cases could reach the courts.

Rosentreter said pushing the legislation through would "tread all over the careful legal analysis" of the courts. She urged the government to abandon the Bill, adding: "No one deserves to earn less than minimum wage and we do not want a servant's economy in Aotearoa."

Uber took a different view, saying the ruling highlights the need for legislative certainty. Foley said the decision "underscores the urgency of the government's proposed law reforms" and argued that most people using the platform prefer to stay independent. She said Uber's research shows "ninety percent of drivers and delivery people say they would stop earning with Uber if the flexibility of the work were taken away".

Global context

New Zealand's decision follows similar rulings overseas, including in the UK, where courts have determined that ride-hail drivers qualify for employment protections. Unions say the judgement reflects the global shift towards greater scrutiny of gig-work models.

Rosentreter said Uber had expanded rapidly in countries with weak protections, arguing the company had not considered the implications for local labour markets or legal systems.

Uber countered that overseas examples where drivers were reclassified had led to reduced work availability and higher consumer prices. The company says applying employee rules to platform work would require shift-based rostering and mandatory trip acceptance, removing the core flexibility drivers currently have.

Looking ahead

Workers First plans to progress collective bargaining and support approximately 1,000 Employment Relations Authority claims seeking backdated pay. Uber will continue operating without immediate changes following the decision.

Rosentreter said one simple question had helped clarify driver status: whether a driver could hand over their own business card while on a job. "The answer was no."

Foley said Uber would maintain services while continuing to offer what she described as "flexible work opportunities" to thousands of New Zealanders.