An Uber driver is an employee for whom the company must pay social security contributions, a Swiss insurance agency has ruled, dealing a blow to the U.S. ride-hailing platform that says drivers are independent contractors. Suva, a Swiss insurance agency, has ruled that Uber must pay social security contributions for its drivers as they are employees rather than freelance contractors. The ruling is the latest in a series of legal challenges to Uber’s business model and raises questions about whether it will be able to continue operating legally in New Zealand. The insurer ruled that drivers should be categorised as staff because they are not free to set prices and payment terms and are subject to consequences if they fail to comply with Uber regulations.
Suva, a Swiss insurance agency, has ruled that Uber must pay social security contributions for its drivers as they are employees rather than freelance contractors. The ruling is the latest in a series of legal challenges to Uber’s business model and raises questions about whether it will be able to continue operating legally in New Zealand. The insurer ruled that drivers should be categorised as staff because they are not free to set prices and payment terms and are subject to consequences if they fail to comply with Uber regulations.