Amazon is on the brink of settling a significant legal dispute with its delivery drivers, potentially costing £140 million. This case highlights the ongoing challenges faced by gig economy workers seeking fair employment terms.
- A group of Amazon delivery drivers claim they’ve been denied thousands in earnings due to their classification as self-employed.
- Around 3,000 drivers argue that Amazon’s control over their work warrants employment rights, such as minimum wage and holiday pay.
- Settlement offers have been made, with some compensations expected to reach tens of thousands of pounds per driver.
- The settlement follows a record-breaking sales period for Amazon, contrasting the legal challenges it faces.
Amazon is approaching the resolution of a significant legal battle that could cost the company £140 million. Triggered by a group of delivery drivers, the dispute centers on accusations that Amazon, by classifying them as self-employed, prevented them from earning their due—a claim first highlighted by The Guardian.
These drivers, operating under Amazon’s ‘delivery service partners’ (DSPs), assert that their working conditions effectively make them employees, deserving of certain employment rights. The solicitors representing the drivers argue for entitlements including minimum wage and holiday pay, suggesting the delivery drivers deserve an average compensation of £10,500 for each year of service.
The drivers report being tightly controlled by Amazon’s app, which sets travel time expectations between deliveries. Moreover, they have to manage returned parcels at their own cost, diminishing their earnings after covering expenses like vehicle rental and insurance. One driver lamented, “After expenses, we often have little left.”
Although the exact number of drivers accepting the settlement or the total cost to Amazon remains undisclosed, offers indicate considerable compensations. Some drivers could receive tens of thousands, with payments expected post-Christmas.
This settlement unfolds in the wake of Amazon applauding its most successful Black Friday and Cyber Monday sales period. The timing contrasts Amazon’s public celebration of its sales achievements against the quiet closure of this legal issue.
Amazon’s settlement with its delivery drivers underscores the complex legal landscape companies face in the gig economy.
