Uber drivers in Amsterdam will be classified as employees and not contractors the Dutch court ruled today. In the UK earlier in the year the court gave more then it’s 70,000 Uber drivers the ability to earn minimum wage, a vacation plan that was paid for as well as a pension plan.
The Amsterdam court ruled that Uber will be required to extend the same or similar benefits to Uber drivers. The court ruled that they will be considered employees just as taxi drivers are in the country.
Uber must classify its drivers in Amsterdam as employees rather than contractors, a Dutch court ruled Monday, in a blow to the ride-hailing company’s gig-economy business model.
The news follows a similar decision earlier this year in the UK, in which the nation’s supreme court gave more than 70,000 Uber drivers access to a minimum wage, pension plan and paid vacation, among other benefits.
Uber will have to pay a $59,000 fine and potentially reward drivers with back pay in the Netherlands.
Uber said it will appeal the ruling and that it does not intend to employ more drivers in the Netherlands.
“We are disappointed with this decision because we know that the overwhelming majority of drivers wish to remain independent,” said Maurits Schönfeld, Uber’s general manager for northern Europe. “Drivers don’t want to give up their freedom to choose if, when and where to work.”
A spokesperson for the Federation of Dutch Trade Unions praised the decision stated, “Due to the judge’s ruling, the Uber drivers are now automatically employed by Uber,” said Zakaria Boufangacha, FNV’s deputy chairman. “As a result, they will receive more wages and more rights in the event of dismissal or illness.”