Victory for UK Bolt Drivers: Employment Tribunal Ruling Secures Worker Status

UK Bolt drivers won’t be seen as independent contractors following a ruling that held their employment status had been misclassified. Due to the control Bolt, a private hire operator (PHO), had over its drivers, the employment tribunal ruled the individuals were workers.

Below, we examine what transpired in the Bolt drivers’ claim and what this will mean going forward. We also explore how this could impact the gig economy as a whole, with several similar cases currently taking place.

If you have any questions about workers’ rights or believe you’ve been misclassified, please don’t hesitate to contact Redmans Solicitors. As experts in the employment law sector, we can answer your queries, analyse your circumstances, and provide specialist advice.

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UK Bolt Drivers Claim: Employment Status in the Spotlight

Following the Uber drivers’ successful Supreme Court ruling in 2021 concerning employment status, around 15,000 UK Bolt drivers launched a claim of their own. They argued that, like Uber drivers, they weren’t independent contractors and were entitled to workers’ rights.

However, the PHO refuted this argument, stating that each Bolt driver held a self-employed status as a contract worker who ran their own business. As such, they were fighting to have the Bolt claim dismissed.

To the UK Bolt drivers’ delight, though, the employment tribunal ruled in their favour. Considering the firm’s degree of control over its drivers and the terms and conditions they applied to them, the tribunal found the self-employed status to be incorrect. Instead, they held each Bolt driver was a worker and was entitled to the associated workers’ rights.

Employment Tribunal Grants Worker Status—What Does this Mean?

Previously, UK Bolt drivers had been classified as contract workers with a self-employed status. While Bolt argued this benefited its drivers as it protected their flexibility and earning potential, it also prevented said individuals from enjoying certain employment rights. However, following the successful Bolt claim, the drivers will no longer be seen as independent contractors, and their rights will drastically change.

How Many UK Bolt Drivers Are There?

According to the employment tribunal’s judgment, as of August this year, there were 100,494 registered UK Bolt drivers. This meant that Bolt’s market share over the previous year varied from 15% to 23% in London and 8.27% to 9.88% across the rest of the UK. While only 15,000 of those drivers brought claims against the PHO, there’s still the potential for others to join.

How Much Commission Does Bolt Take?

Although Bolt’s commission varies based on factors like location, it typically charges drivers 15-20% of each fare. While they no longer directly charge a commission, since the PHO now collects payment from the customer, they still deduct this amount before transferring the remainder to the Bolt driver.

Back Pay Secured in UK Bolt Drivers’ Claim

Among other things, the successful Bolt claim will entitle the PHO’s drivers to workers’ rights, including minimum wage and holiday pay. The 15,000 who brought the claim will also be entitled to backdated compensation for any underpayment related to holidays or minimum wage. 

Allegedly, this could amount to more than £15,000 per claimant and cost Bolt over £200 million. The actual amount of compensation will be determined by the employment tribunal in a separate hearing next year.

Bolt Ruling Marks Shift in the Gig Economy

The recent UK Bolt drivers’ claim, resulting in the reclassification of drivers as workers, is part of a broader trend that could significantly impact the gig economy. This ruling follows similar cases and indicates a growing recognition of gig workers’ rights across various platforms.

Precedent-Setting Cases

The Bolt drivers’ case isn’t an isolated incident. In 2021, the UK Supreme Court ruled against Uber in a similar claim, establishing a precedent for employment status in the gig economy. 

What’s more, 700 Addison Lee drivers are currently pursuing a comparable case, while hundreds of Ola drivers are scheduled to have their case heard soon. These cases demonstrate a shift towards recognising gig workers’ rights, and Bolt’s case may have reaffirmed the above precedent for workers on other platforms to seek similar recognition.

Implications for Gig Economy Companies

The reclassification of gig workers as workers and not independent contractors could have far-reaching consequences for companies operating in this sector:

  • Reassessment of Business Models: Companies operating in the gig economy may need to fundamentally reassess their business models and worker classification strategies. This could significantly change how these companies operate, potentially affecting their profitability and growth strategies.
  • Financial Impact: The financial implications for gig economy companies could be substantial. Providing workers’ rights such as minimum wage, holiday pay, and other benefits will likely increase operational costs. For instance, the compensation owed to the 15,000 claimants is estimated to be worth over £200 million.
  • Legal and Compliance Challenges: Companies may face increased legal scrutiny and compliance requirements. They might need to invest in legal resources to navigate the changing regulatory landscape and ensure compliance.

Future Outlook

As the gig economy continues to evolve, we can expect:

  1. More legal challenges across different platforms and sectors.
  2. Potential legislative interventions to clarify and standardise worker classifications.
  3. Adaptation of business models to incorporate greater worker protections while maintaining operational viability.
  4. Increased focus on technological solutions to balance flexibility with worker rights.

Overall, the UK Bolt drivers’ victory represents a significant milestone in the ongoing debate about worker classification in the gig economy. It signals a continuing shift towards greater recognition of worker rights and protections in this sector. 

As the landscape evolves, companies, workers, regulators, and consumers must adapt to these legal interpretations and their wide-ranging economic implications. The challenge lies in finding a balance that protects workers’ rights while preserving the innovation and flexibility that have made the gig economy an important part of the modern labour market.

Get Help With Redmans

If you have any questions following the UK Bolt drivers’ claim or believe you’ve been incorrectly classified as a contract worker, please reach out. Redmans Solicitors are employment law experts who can provide specialist advice and discuss your possible next steps.

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