Bolt Employee Status Ruling – Threat to Gig Economy?
In a landmark decision on the gig economy front, thousands of Bolt drivers in the UK have won a legal battle granting them worker status. This employee rights status ruling means drivers previously classified as independent contractors now have employee rights to holiday pay, a guaranteed minimum wage, and potentially substantial compensation.
It’s a win that could cost Bolt over £200 million, but more than that, it sets a new precedent that has ripple effects across the UK’s gig economy.
The Ruling: Bolt Drivers Are Workers, Not Contractors
The employment tribunal found that Bolt’s drivers are workers under UK law. This distinction means they are eligible for basic employment rights, including the minimum wage and paid holidays. This decision represents a significant shift for around 15,000 current and former Bolt drivers. Instead of being classified as independent contractors, these drivers now have legally backed protections.
Plan Insurance can provide bespoke taxi insurance quotes for all UK drivers. Just fill in our short online questionnaire, and our professional brokers will be in contact to arrange your insurance.
Why This Matters for the Gig Economy
This ruling builds on the Supreme Court’s 2021 decision, which granted Uber drivers worker status, making Bolt the latest gig economy company to face legal action on employment rights. However, the Bolt ruling goes even further. It highlights that “multi-apping” (where drivers work across multiple platforms) doesn’t exempt gig workers from their rights. This distinction could impact the entire industry.
The gig economy is often defined by flexibility. Many drivers and couriers work across multiple platforms, preferring the independence and control this gives them over their work schedules. But for drivers on Bolt alone, this ruling changes the landscape. Leigh Day, the law firm representing the drivers, argued that gig economy firms cannot sidestep worker rights by, in their opinion, misclassifying employees as independent contractors. According to the law firm, the ruling affects “all of the 100,000-plus drivers” connected to Bolt in the UK, although Bolt pointed out that nine in 10 drivers use multiple platforms.
This clash between freedom and fair treatment is at the core of many gig economy debates. While most drivers value the autonomy that comes with independent contracting, there is a growing call for baseline protections – ensuring that, even with flexibility, workers are not left without a safety net.
However, many commentators within the business community would argue that restricting firms in this way will prohibit the generation of opportunities to earn that many gig workers benefit from and value greatly.
What This Means for Bolt and Other Ride-Hailing Companies
The GMB union, which supported the drivers in their claim, has said this ruling will have “implications for the whole industry.” It challenges firms to rethink their approach to worker classification and, specifically, to look at aspects like waiting time pay – a significant point of contention among gig workers who often aren’t paid for time spent waiting between jobs. GMB national officer Eamon O’Hearn highlighted that workers’ rights to holidays should be universal.
This decision could mean a significant financial burden for Bolt if they’re required to provide backdated compensation, potentially over £200 million. Although the company is reportedly exploring its options for appeal, the tribunal’s stance on the company’s control over its drivers is a significant blow to the business models of many gig economy companies. This decision rules that flexibility should not come at the expense of fundamental rights.
Bolt drivers now have a right to minimum wage and holiday pay – this significant victory could fuel similar cases and influence more companies to rethink their classification practices. Bolt argues that their drivers prefer the flexibility of being self-employed.
Moving Forward: What This Means for UK Gig Workers
As gig economy cases continue to unfold in the UK, it’s clear that there’s a growing movement to secure greater protections for workers. It should go without saying that steps should be taken to prevent unfair worker exploitation in the gig economy.
At the same time, the opinion of those within the gig economy should be taken on board. The world of work is evolving quickly with the emergence of new technologies and operating models. Employment protocols may need reviewing to take into account new independent contractor classifications within a rapidly changing gig economy that values both flexibility and worker rights.
Find out why 96% of our customers have rated us 4 stars or higher, by reading our reviews on Feefo.
