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