Bolt Drivers Granted Worker Status, Entitled to Holiday Pay and Minimum Wage

A legal claim has resulted in thousands of drivers for the ride-hailing and food delivery application Bolt being reclassified as workers in the UK, rather than self-employed individuals. This determination signifies that drivers may now qualify for holiday remuneration and the statutory minimum wage, a situation that legal professionals have indicated could result in compensation exceeding £200m. Bolt stated it is evaluating its available options, which include potential grounds for an appeal. The company highlighted that the Employment Tribunal’s conclusions were specifically applicable to drivers who do not operate on several ride-hailing applications simultaneously. Around 15,000 individuals, comprising both current and former Bolt drivers, initiated legal proceedings against the Estonian-headquartered company at a London employment tribunal. Their contention was that they should be formally recognized as workers under British legislation. Bolt asserted that it had “always supported” the “choice” of its drivers “to remain self-employed independent contractors”. However, the tribunal concluded that “overwhelmingly, the power lies with Bolt”. The tribunal further stated that “There is nothing in the relationship which demands, or even suggests, agency” on the part of the drivers. The tribunal additionally stated that “the supposed contract between the Bolt driver and the passenger is a fiction designed by Bolt – and in particular its lawyers – to defeat the argument that it has an employer/worker relationship with the driver”. This judgment represents the most recent development concerning the “gig-economy,” an economic model distinguished by flexible yet unpredictable work arrangements. Leigh Day, the legal practice representing the plaintiffs, commented that the verdict affirmed that “gig economy operators cannot continue to falsely classify their workers as independent contractors… to avoid providing the rights those workers are properly entitled to”. The firm urged Bolt to provide compensation to its clients “without further delay”. Leigh Day indicated that the decision “affects all of the 100,000-plus drivers who take on work through the Bolt private hire hailing app”. Conversely, Bolt maintained that the Employee Tribunal’s conclusions were restricted to drivers who do not engage in “multi-apping”. The company reported that nine out of ten Bolt drivers utilize multiple applications to connect with customers. This legal action comes after a significant Supreme Court judgment in 2021, which determined that Uber drivers were not self-employed but rather workers, thereby entitled to rights such as holiday pay, a guaranteed minimum wage, and rest periods. The GMB union commented that the Bolt decision “goes further than the landmark case against Uber”. Following the 2021 ruling, Uber had agreed to formally recognize the GMB. Eamon O’Hearn, a GMB national officer, stated that the Bolt judgment “raises questions for the industry around waiting time and multi-apping.” He added, “We believe workers rights around holidays should be universal and this ruling confirms that fact.” He further indicated that the union intends to “review the decision closely and engage with the industry to understand the implications for our members”. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding our policy on external linking is available.