Bolt is facing a potential £200 million bill after losing his employees' lawsuit

Friday, November 8, 2024 2:32 PM
| Updated:

Friday November 8, 2024 3:00 PM

Ride reporting app Bolt has lost a legal challenge against classifying its drivers as ’employees’, in a ruling that could leave the company with a £200 million bill and open the door to thousands of people receiving employment benefits from the company.

Approximately 10,000 current and former private hire drivers took the Estonian company to the labor court who want to receive the minimum wage and receive working conditions.

However, Bolt pushed back against the claims, stating that the drivers do not count as “workers” and that the contract with them is for self-employed, independent contractors.

This is the latest case on the status of gig economy workers for Bolt following a hearing at the Tribunal in September.

During today’s final hearing, the judge had to consider whether the drivers were ’employees’ within the meaning of the National Minimum Wage Act, and, if the drivers are ’employees’, for what periods of time under that law.

A judgement was delivered this morning, in which the Tribunal ruled that the Bolt drivers represented are not self-employed entrepreneurs running their own businesses, as Bolt claimed.

Lawyers for the claimants believe the damages owed to their clients could be worth more than £200 million.

Instead, the terms Bolt applies to the drivers’ relationship with the company, and the control the company has over the drivers’ work, mean that they are employees, the court ruled.

Because they are defined as an “employee,” drivers are entitled to employee rights and protections under employment law.

A new hearing is expected to take place as early as next year, when the Labor Court will decide how much compensation for unpaid holiday pay and lost earnings each driver will receive.

While this decision is in effect, Bolt can also attempt to appeal the ruling, which has yet to be decided.

In a similar matter, the UK Supreme Court ruled in 2021 that Uber drivers are employees and not self-employed.

A Bolt spokesperson said: “Drivers are at the heart of what we do, and we have always supported the choice of the overwhelming majority to remain self-employed, independent contractors, protecting their flexibility, personal control and earning potential.”

“We will continue to work with drivers as we carefully assess our options, including grounds for appeal, to ensure we help drivers succeed as entrepreneurs and grow on their own terms,” she added.