UK drivers for the ride-hailing and food delivery app Bolt are now classified as staff rather than self-employed, according to a ruling from the Employment Tribunal. This significant decision affects over 100,000 Bolt drivers, granting them better workplace protections for the first time under UK law. They are now entitled to the national minimum wage, statutory holiday pay, mandated rest breaks, and protection against discrimination and whistleblowing.
The tribunal rejected Bolt’s argument that drivers were independent contractors running their own businesses. The tribunal found that Bolt maintains too much control over the drivers’ daily activities and relationship terms, leading to the conclusion that they are indeed workers. The ruling stated, “Overwhelmingly, the power lies with Bolt,” and criticized the company for fabricating a relationship that implied independence to sidestep legal responsibilities.
The tribunal also determined that drivers should be paid for the time they spend logged into the Bolt app, except when they are also using other ride-hailing services like Uber or Deliveroo. Lawyers representing the drivers believe this decision could result in over £200 million in collective compensation, with each driver potentially owed around £15,000.
The tribunal’s next step will be to establish the exact compensation owed to drivers. Charlotte Pettman, a solicitor from Leigh Day who represented about 15,000 current and former Bolt drivers, expressed satisfaction with the ruling. She emphasized that this decision reinforces that gig economy companies cannot misclassify workers to evade their rights.
Driver Shuhel Ahmed voiced his relief, noting that the ruling acknowledges their hard work and holds promise for better pay and conditions, which could significantly benefit his family.
A spokesperson for Bolt, currently contemplating its options including an appeal, stated that they support drivers who prefer to remain self-employed to maintain their flexibility and earning potential.
This ruling follows a significant decision from the UK Supreme Court in February 2021, which classified Uber drivers as workers. The case was led by Yaseen Aslam and the App Drivers and Couriers Union. While Uber has started to pay the minimum wage to its drivers, it has restricted that payment to the time drivers are assigned to specific trips, not covering the full time logged into the app.
ACDU general secretary Zamir Dreni commented on the need for government intervention to address gaps in labor protections for gig workers, noting that a significant amount of working time remains unpaid.
However, the situation isn’t consistent across the industry. In June 2021, a UK Court of Appeal ruling determined that Deliveroo riders should remain classified as self-employed, denying them rights to trade union organization. Some judges acknowledged the potential benefits of collective organization for workers but stressed that the specific details of the case led to a different conclusion compared to the Uber situation.
The Independent Workers Union of Great Britain (IWGB) has continued to advocate for riders’ worker status, appealing the Deliveroo ruling, but the Supreme Court dismissed this appeal in November 2023, stating the nature of the riders’ work did not align with an employment relationship.