Addison Lee settles workers’ rights case before landmark hearing

The private hire taxi firm Addison Lee has reached a settlement with three drivers who were set to take them to the employment tribunal in a long-running battle over workers’ rights.

The claim was originally brought by three drivers who sued Addison Lee to establish that they were in fact employees and not self-employed contractors.

The Employment Tribunal in 2017 ruled that Addison Lee drivers are workers. This decision was upheld by the Employment Appeal Tribunal in 2018 and Court of Appeal in 2021.

The three drivers were due to be at the Tribunal next month but their case is now settled, the details of the settlement were not disclosed.

Despite the settlement, more than six hundred other drivers have also lodged claims for compensation, using law firm Leigh Day. However, Addison Lee argues that the 2017 judgment does not apply to the other claimants who have since brought claims against the company.

Leigh Day stated that a hearing is due to take place in October and November 2024 to determine whether the rest of the claimants are workers and entitled to workers’ rights.

GMB Union said that its members have been waiting seven years for compensation, as it noted that some have died while waiting.

The union estimates Addison Lee’s final compensation bill could run in the “tens of millions of pounds”.

Commenting on the news, Steve Garelick, GMB organiser said: “For seven years, GMB has stood alongside our members in this fight for justice. We are proud to have played a role in securing this outcome, which ensures that Addison Lee will pay drivers the millions they are owed.

“One of our lead claimants has a terminal illness and we have lost other members during this battle for them and their families the win is bittersweet. We urge other companies to learn from this case and ensure their workers are treated fairly,” he added.

While, Liana Wood, a senior associate at Leigh Day said: “This settlement is yet another blow to big firms operating in the gig economy.  It is a reminder that companies cannot ignore their legal obligations and must treat their workers fairly.” 

A spokesperson for Addison Lee stated: “Following the Lange determination in 2017, Addison Lee continued to evolve its working practices to address the issues raised. This was also reinforced under new management in March 2020. Despite the challenges posed by the pandemic, on our return we introduced entirely new contractual arrangements.”

“This includes providing drivers with the London Living Wage guarantee, explicit holiday pay entitlement, and access to an industry leading pension – without compromising on the flexibility our drivers demand. These changes reinforce the self-employed status of our drivers, who consistently tell us they prefer the freedom and flexibility to work on their own terms – when, where and how often they see fit,” the added.

Earlier this month, major companies including Uber Eats and Deliveroo were hit with strike action as some 3,000 drivers were demanding better pay and working conditions.

There have been several legal cases over defining an employee in these type of gig ecomony business. Back in November, the Supreme Court ruled that Deliveroo riders were not classed as ‘workers’ and therefore are unable to form a union, following a seven-year battle.