The Uber app on an iPad. (AP/Patrick Semansky)

Proposed class action against Uber can proceed

Plaintiff argues Uber drivers are employees, entitled to a minimum wage, vacation pay and more

A proposed class-action lawsuit against the ride-hailing company Uber filed by one of its drivers will go ahead after Ontario’s top court reversed a lower court decision that would have sent the matter to arbitration overseas.

In a ruling released Wednesday, the Court of Appeal for Ontario says a clause in Uber’s services agreement that requires all disputes to go through arbitration in the Netherlands amounts to illegally outsourcing an employment standard and therefore cannot stand.

READ MORE: B.C. ride hailing regulation battle to carry on into 2019

It further concludes that the clause takes advantage of the significant power and financial disparity between Uber and its drivers, who would bear up to US$14,500 in filing fees just to begin the arbitration process, no matter the amount at stake in the dispute.

“I believe that it can be safely concluded that Uber chose this arbitration clause in order to favour itself and thus take advantage of its drivers, who are clearly vulnerable to the market strength of Uber,” the appeal court said. ”It is a reasonable inference that Uber did so knowingly and intentionally.”

The lawsuit, which claims Uber drivers are employees rather than contractors and thus subject to Ontario’s labour legislation, had been stayed earlier this year by a motion judge who found Uber drivers were bound by the arbitration clause.

The three-judge appeal panel says the motion judge erred on several points, including in considering the arbitration clause like the kind seen in “normal commercial contracts” where the parties are relatively equal in power and sophistication.

A spokesman for Uber Canada says the company will be reviewing the appeal ruling.

The appeal court ruling does not deal with the claims made in the lawsuit, which will be tested in civil court. Nor does it rule on whether the suit qualifies as a class action.

The man behind the suit, David Heller, is a 35-year-old driver for UberEats, a service that calls on drivers to deliver food from restaurants to Uber customers. He argues that Uber drivers are employees, which makes them entitled to a minimum wage, vacation pay and other protections under Ontario’s Employment Standards Act.

Paola Loriggio, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Explore the sunken treasures of the Shuswap

Divers explore historic boats and a Ford Model T that broke through lake ice while on a delivery

Kick in, pick up, clean up

Askew’s Downtown Community Cleanup hits the street April 13

Okanagan-Shuswap weather: Friday last day before rain and clouds return

Environement Canada forcasts a sunny Friday, but darker weekend days

Rat problem arises in the Shuswap

Traps repeatedly selling out as Chase residents deal with unwelcome rodents

Demand for mental health services increasing with acceptance

Support organization sees growing waitlist, particularly for youth and families with children

Fierce feline spotted as ‘aggressor’ in face off with coyote in B.C. backyard

North Vancouver resident Norm Lee captures orange cat versus coyote in backyard showdown

UPDATE: Gun allegedly drawn over garbage dispute in Kelowna

The public is asked to stay away from the Christleton Avenue area

Second case of measles reported in the B.C. Interior

Case is connected to an earlier measles case in 100 Mile House

Cheetahs will not prosper in Creston: Permit rejected for two big cats

Earl Pfeifer owns two cheetahs, one of which escaped in December 2015

GM announces jobs, electric vehicle after Trump criticism

The company says it will spend $300 million at its plant in Orion Township

Trucker who caused Broncos crash likely to be deported: lawyer

The Crown has asked that Sidhu serve 10 years in prison

World Water Day: Special challenge issued to youth to be climate conscious

Friday, March 22, the Okanagan Basin Water Board is issuing a special challenge

China chemical plant blast kills 47, injures hundreds more

This is one of China’s worst industrial accidents in recent years

Most Read