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December 18, 2024
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Amazon to Settle £140mn Dispute with UK Delivery Drivers

Amazon is set to settle claims brought by delivery drivers in the UK, potentially costing the company up to £140 million. The claims argued that drivers working through Amazon's Delivery Service Partners (DSPs) were treated as employees in practice but denied basic employment rights like holiday pay and minimum wage.
Amazon to Settle £140mn Dispute with UK Delivery Drivers

Amazon has agreed to settle a landmark case brought by UK delivery drivers who claimed they were deprived of employment rights while working for the e-commerce giant through its Delivery Service Partners (DSPs). The settlement, expected to total millions of pounds, resolves a dispute that lawyers said could cost Amazon and its DSPs £140 million.

The claim, led by law firm Leigh Day, involved at least 3,000 drivers who alleged they were misclassified as self-employed contractors. This classification denied them access to rights such as:

  • Minimum wage
  • Holiday pay
  • Employment contracts

Drivers argued that despite being labeled as self-employed, Amazon dictated their working conditions, making them effectively employees. Key points included:

  • The app-controlled delivery times, requiring drivers to meet tight schedules.
  • Drivers could not return undelivered parcels to depots, forcing them to use their own fuel to redeliver items.
  • High expenses for vehicle rental and insurance left drivers with minimal earnings.

The settlement offers, funded by Amazon and its DSPs, include payouts worth tens of thousands of pounds for some drivers after legal fees. Payments are expected to be distributed shortly after Christmas.

Acceptance of the settlement bars drivers from filing further claims against the company. However, the settlement terms, including the total cost to Amazon, have not been disclosed.

Leigh Day declined to comment on the settlement specifics but confirmed that affected drivers had received offers.

This case follows the landmark 2021 Supreme Court ruling that Uber drivers should be classified as workers with access to the minimum wage and holiday pay. That ruling set a precedent for gig economy workers challenging artificial contracts designed to deny employment protections.

Amazon has not commented on whether it will adjust the employment conditions of its delivery drivers following the settlement. However, the case raises questions about how the company and similar businesses will navigate growing legal and regulatory scrutiny of gig economy practices.

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