GENEVA: Switzerland’s highest court agreed Friday that Uber drivers should be considered employees and not independent contractors, backing a Geneva decision to temporarily ban activities by ride-hailing giant.
Switzerland’s Federal Court rejected Uber’s appeal of a 2019 ruling in the Swiss canton of Geneva classifying its drivers as employees, and ordering it to halt its activities unless it pays their social charges.
In a statement, the court said the Geneva court’s ruling was “not arbitrary”, adding that “the federal court rejects the corresponding appeal.”
Uber drivers are typically paid for each ride and are considered self-employed which means they are not entitled to benefits including paid holidays, pensions and sick leave.
But in 2019, the Geneva canton determined there was a “subordination link”, meaning the drivers were not free to choose their clients, set their prices or pick their routes.
It ruled that Uber, which has faced regulatory issues in a range of countries, was therefore subject to Swiss employment law, meaning it was responsible for paying social charges for its drivers.
Geneva hailed Friday’s ruling as a “historic victory”, adding in a statement that the temporary ban on Uber’s ride-hailing activities in the canton could take effect as of Sunday.
Uber acknowledged in a statement that it now would have “no other choice but to temporarily suspend its (ride-hailing) services in the canton while we again contact the authorities in search of an acceptable solution for all”.
It slammed the decision, saying it “does not take into account the fact that the drivers ... do not want to be employees”.
It also insisted that while the ruling refers to how Uber operated in Geneva up until 2019, “it does not take into account the modifications carried out since then”.
The San Francisco-based tech firm stressed that the Federal Court ruling only had implications in Geneva and not across Switzerland.
But Geneva authorities highlighted that the Federal Court ruling provides precedence for other Swiss regions that might want to follow Geneva’s example.
Fabienne Fischer, a member of the cantonal government in charge of labour issues, said in the statement that the ruling marked a “major advance for the respect of working conditions, salary protection and the fight against unfair competition”.-AFP
