NZ Supreme Court: Uber Drivers Are Employees

New Zealand's Supreme Court has unanimously ruled that four Uber drivers are employees, not independent contractors, upholding a lower-court decision. This landmark judgment, delivered on November 17, 2025, dismissed Uber's final appeal in a case that began in 2021, according to jurist News.

The decision grants these drivers access to crucial statutory employment benefits, including minimum wage, paid leave, and the right to collective bargaining. Workers First Union, representing the drivers, stated this victory paves the way for thousands of its members to pursue full employment rights.

This ruling sets a significant precedent for the burgeoning gig economy in New Zealand, challenging the prevailing model of classifying platform workers as self-employed. It emphasizes that the "real nature" of the working relationship, rather than contractual labels, determines employment status under the Employment Relations Act 2000.

Uber expressed disappointment with the Supreme Court's findings, with Uber Australia & New Zealand Managing Director Emma Foley noting the decision casts doubt on contracting arrangements across the country. However, Foley also stated that the ruling currently relates to only four drivers, and Uber and Uber Eats would continue to operate as normal.

The four drivers—Nureddin Abdurahman, Julian Ang, Bill Rama, and Lalogafau Mea'ole Keil—were celebrated by Workers First Union for their four-year legal battle. Anita Rosentreter, Deputy Secretary of Workers First, highlighted the magnitude of their achievement for all workers subjected to similar exploitation.

In response to earlier court decisions, Workplace Relations Minister Brooke van Velden had announced plans to amend the Employment Relations Act 2000 with a "Gateway Test" to clarify contractor status, as reported by The New Zealand Initiative in September 2024. However, unions are now calling for this proposed legislation to be reconsidered in light of the Supreme Court's definitive judgment.

• Long-Running Legal Battle Culminates: The Supreme Court's decision on November 17, 2025, marks the culmination of a four-year legal challenge initiated by four Uber drivers in 2021. The Employment Court first ruled in favor of the drivers in November 2022, a decision subsequently upheld by the Court of Appeal in August 2024, before reaching the highest court. This consistent judicial stance underscores a growing legal consensus on gig worker classification.

• "Real Nature" of Relationship Key: The Supreme Court, citing Section 6 of the Employment Relations Act 2000, focused on the "real nature of the relationship" between Uber and its drivers, rather than the contractual terms. JURIST News reported that the court described Uber's contractual language as "window-dressing" designed to obscure an employment relationship, emphasizing Uber's extensive control over drivers through fare setting, disciplinary actions, and performance monitoring.

• Enhanced Rights for Drivers: As a direct result of this ruling, the four Uber drivers, and potentially many others, are now entitled to fundamental employment rights. These include minimum wage protections, paid annual leave, sick leave entitlements, KiwiSaver contributions, and the ability to engage in collective bargaining, according to Radio New Zealand. This shift provides a safety net previously unavailable to gig workers classified as independent contractors.

• Significant Implications for the Gig Economy: The decision carries profound implications for Uber's business model and other platform companies operating in New Zealand. Knowhow Ltd noted in December 2025 that the ruling could prompt other businesses utilizing contractor models to review and potentially adjust their practices to ensure compliance with employment laws. This may lead to increased operational costs for platforms and a re-evaluation of their engagement strategies.

• Government's Legislative Response Under Scrutiny: In September 2024, Workplace Relations Minister Brooke van Velden announced plans for an Employment Relations Amendment Bill, which would introduce a "Gateway Test" to provide clearer guidelines for worker classification. However, Workers First Union has urged the government to halt this bill, arguing it could undermine the Supreme Court's judgment by enshrining worker misclassification into law.

• Part of a Global Trend: New Zealand's ruling aligns with similar judicial and legislative developments internationally. The UK Supreme Court, for instance, classified Uber drivers as "workers" in 2021, granting them some employment rights, as highlighted by Crossland Employment Solicitors. Switzerland has also classified Uber drivers as employees, and Canada's Ontario province introduced the Digital Platform Workers' Rights Act 2022, indicating a global movement towards greater protections for gig workers.

• Future of Collective Bargaining and Worker Claims: With the Supreme Court's decision, Workers First Union confirmed its intention to proceed with collective bargaining on behalf of Uber drivers, a process initiated in 2022 but previously resisted by Uber. Legal experts, such as those cited by IBFD in November 2025, anticipate that this precedent could also open the door for thousands of drivers to pursue claims for historic underpayment and other entitlements.