The Court of Cassation now considers that an Uber driver, given his link of subordination with the platform, can be reclassified as an employee if he requests it. This decision of the highest civil court should set precedent and weaken the economic model of Uber and more broadly platforms like Deliverro, StaffMe or so many others who are caught up by labor law.
It is a thunderbolt for Uber but also other Internet platforms like Deliveroo whose workforce may be reclassified as employees.
Yes, it is a decision of the Court of Cassation which is going to be rudimentary since the highest civil jurisdiction now considers that an Uber driver, given his link of subordination with the platform, can be reclassified as an employee if he requests it. Today in France, 28,000 VTC drivers work with Uber. This does not mean that they will all become employees. Besides, many hold on to their status as self-employed. But this weakens the economic model of Uber and more broadly platforms like Deliverro, StaffMe or so many others who are caught up by labor law. Not only in France, moreover, since in California, for example, the law has imposed stricter social constraints on platforms since January.
So is it really a blow to Uber?
In the short term obviously this is not good news. Uber could even be obliged to compensate the drivers who will be reclassified as employees. But by imposing the rules of labor law on platforms, justice is the whole paradox of this issue, favors giants like Uber in the face of newcomers those who would like to compete with them. It will become more difficult to offer services via an Internet platform since there will now be this risk that the workforce will be reclassified as employees. Basically, this creates a barrier to entry for new entrants. And it actually favors those who, like Uber, have taken advantage of loopholes in the law in recent years to build an empire.