Ride-hailing app Bolt has been defeated in a legal battle over the classification of its drivers as 'workers', a decision that could potentially cost the company £200m and pave the way for thousands to receive employment benefits.
Around 10,000 current and former private hire drivers brought the Estonian firm before the Employment Tribunal, demanding minimum wage and employment benefits, as reported by .
Bolt, however, contested these claims, insisting that the drivers do not meet the criteria for 'workers' and their contract with them is for self-employed independent contractors.
This marks the latest case concerning the status of gig-economy workers for Bolt following a Tribunal hearing in September.
In today's hearing, the judge had to determine whether the drivers were 'workers' under the National Minimum Wage Act, and if so, during what periods under this Act.
A judgement was delivered this morning, with the Tribunal ruling against Bolt's assertion that the represented drivers are self-employed contractors running their own businesses.
The claimants' lawyers estimate that the compensation due to their clients could exceed £200m.
The court ruled that the terms and conditions applied by Bolt to the drivers' relationship with the company, coupled with the control the firm exercises over the drivers' work, classify them as workers.
As 'workers', the drivers will now be eligible for workers' rights and protection under employment law.
A subsequent hearing is anticipated to occur as soon as next year, where the Employment Tribunal will determine the amount of compensation each driver should receive for unpaid holiday pay and lost income.
While this ruling is in effect, Bolt may consider appealing the decision, a course of action yet to be determined.
In a parallel case in 2021, the º£½ÇÊÓƵ Supreme Court decreed that Uber drivers are workers, not self-employed contractors.
A spokesperson for Bolt commented: "Drivers are at the heart of what we do, and we have always supported the overwhelming majority's choice to remain self-employed independent contractors, protecting their flexibility, personal control, and earning potential.."
"We will continue to engage with drivers as we carefully review our options, including grounds for appeal, ensuring that we are helping drivers to succeed as entrepreneurs and grow on their own terms," they further stated.
