Tribunal Rules Addison Lee Drivers Workers, Granting Backpay Rights

Hundreds of Addison Lee private hire drivers have won a landmark tribunal case that officially classifies them as workers, entitling them to backpay, holiday pay, and the national minimum wage. The ruling, involving around 700 drivers represented by Leigh Day solicitors, is a pivotal moment for gig economy employment rights in the UK.

The Employment Tribunal's decision affirms that drivers are workers while logged into Addison Lee’s app or device, and owner-drivers are workers from job acceptance to completion. This classification allows for significant backdated compensation claims. Addison Lee has not yet commented on the judgment.

Background of the Case

The case stems from a 2017 ruling where three Addison Lee drivers were initially classified as workers. Despite Addison Lee's appeals, the 2021 Supreme Court ruling on Uber drivers bolstered the argument for worker status. Addison Lee settled out of court with the original three drivers in early 2024 but contested its broader applicability.

In late 2024, the Employment Tribunal ruled that the worker classification applies to all Addison Lee drivers, rejecting the company's operational changes as superficial and irrelevant to the core issue.

Compensation and Implications

The tribunal’s decision allows claims for holiday pay and minimum wage violations to be backdated beyond two years. Leigh Day’s legal team has highlighted the potential for significant compensation, particularly for long-serving drivers.

This ruling sets a critical precedent for the gig economy in the UK, reinforcing the rights of private hire drivers. Many view it as a step toward greater fairness in employment practices.

Solicitor’s Comments

Liana Wood, employment solicitor at Leigh Day, welcomed the judgment:

“We are delighted that the Employment Tribunal has found in favour of Addison Lee drivers. This decision is of huge importance to drivers at Addison Lee who have been fighting for many years to be recognised as workers and to be paid properly for the work they do.”

Addison Lee’s Lack of Response

Addison Lee has yet to respond publicly to the tribunal ruling. The company’s silence contrasts with growing calls for them to address backpay claims and adjust their employment practices.