Uber Loses U.K. Lawsuit Over Drivers' Rights in Gig Economy

  • Drivers are workers, London appeals court says in 2-1 ruling
  • Third U.K. employment law defeat comes as Uber ponders IPO
Uber Loses U.K. Suit on Drivers' Rights
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Uber Technologies Inc. lost a U.K. lawsuit over the employment rights of its drivers, in a landmark judgment that threatens to force companies in the country’s burgeoning gig economy to offer benefits such as paid vacations.

London’s Court of Appeal dismissed a challenge Wednesday by the ride-hailing firm over a lower court ruling that found its drivers are “workers,” meaning they’re entitled to the minimum wage and holiday pay. It’s the third time Uber has been defeated in the British lawsuit. The company will now take the case to the Supreme Court, a spokeswoman said.