High Court backs freedom to contract in major ruling

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The High Court has reinforced employers’ powers to define employment by contract in a major ruling that lends support to the gig economy.

The High Court has reinforced businesses’ powers to define employment by contract in a landmark ruling that erects major barriers for sham contract claims and lends support to Uber and Deliveroo’s arguments their workers are not employees entitled to minimum wages and conditions.

A majority of the High Court instead adopted a strict approach to sham contract claims that relied almost solely on the terms of the contract itself. The drivers set up partnerships with their wives and invoiced the company for their services while paying for maintenance and operational costs.

 

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