Bolt drivers take legal action over employment status

More than 1,600 drivers working for ride-hailing app Bolt are searching for compensation “after years of being denied holiday pay and the National Living Wage”, on the premise they’ve been wrongly categorised as self-employed.

Brought on behalf of drivers by the Independent Workers’ Union of Great Britain (IWGB) and legislation agency Leigh Day, the legal action will argue that Bolt drivers must be categorised as employees reasonably than self-employed, which might entitle them to fundamental rights reminiscent of assured minimal earnings, vacation pay and safety from discrimination.

Founded in 2013, Estonian-based Bolt has roughly 65,000 drivers working for the agency throughout 14 cities within the UK and was valued at $8.4bn earlier this yr.

Bolt driver and lead claimant within the case, Amadou Diallo, stated whereas he values versatile working as a result of it, in idea no less than, provides him time to be with household and have extra management over his life day-to-day, the flexibleness means nothing with out rights.

“With pay often below minimum wage in real terms, and with a lack of holiday pay, I am forced to work long hours every single day, not leaving me enough time to see my children and live my life,” he stated.

“It seems obvious to me that I should be entitled to basic rights and protections. I am not in control of the rides that come to me, I cannot promote myself, seek more work or set my own fees. All the work I do is for Bolt, and I deserve basic rights in return.”

Nader Awaad, chair of the IWGB’s United Private Hire Drivers’ department, agreed that flexibility shouldn’t come on the expense of employees’ rights and protections.

“Because Bolt drivers are wrongfully misclassified as independent contractors, they are denied holiday pay and forced to endure wages that are often, in real terms, below minimum wage. Limb (b) worker status would ensure that drivers have both flexibility and rights,” stated Awaad.

“Across the gig economy, we are witnessing a series of landmark legal challenges as the law finally catches up with companies that exploit legal loopholes and treat their workers as disposable.”

In February 2021, for instance, the UK Supreme Court dominated that Uber – which Leigh Day legal professionals say has the same enterprise mannequin to Bolt – ought to classify its drivers as employees reasonably than self-employed people, following a legal problem introduced by non-public rent driver Yaseen Aslam and his union, the App Drivers and Couriers Union (ADCU).

However, though Uber agreed that March to pay its UK drivers the minimal wage, it stated this could solely apply for the time they’re assigned to journeys, reasonably than, as the Supreme Court explicitly ruled, from the time they log in to the app.

In September 2022, the IWGB additionally launched the same legal declare towards meals supply app operator Deliveroo, arguing that riders have been denied collective bargaining rights and searching for to ascertain their employee status.

“Leigh Day is confident that Bolt drivers should be given worker status and the rights this affords. The Supreme Court, the highest court in the UK, has already ruled in favour of Uber drivers in their workers’ rights claims,” stated Charlotte Pettman, a solicitor in Leigh Day’s employment group.

“This should be a clear warning to other companies with similar business models that they cannot continue to short-change their drivers,” she added. “With the whole of the UK feeling the effects of the cost-of-living crisis, now more than ever it is vital that drivers receive holiday pay and at least the National Living Wage, as they are entitled to.”

Bolt stated the corporate “complies with applicable laws and regulations specific to our business”.

A Bolt spokesperson stated: “The Supreme Court ruling associated to Uber’s working mannequin in 2016 which is completely different to our personal.

“Bolt’s working mannequin means drivers obtain larger earnings per journey and profit from complete flexibility. Our in depth driver engagement reveals again and again this mannequin is what the overwhelming majority of our drivers need.

“We operate in a highly competitive market to attract drivers so it is in our interests to operate a model that works best for them; if not, they will go elsewhere.”