In a major legal development, the UK’s Employment Tribunal ruled in favour of Bolt drivers, determining they are not self-employed contractors as claimed by Bolt but workers entitled to employment rights and protections. Represented by Leigh Day, a prominent UK law firm, this decision has far-reaching implications for more than 100,000 drivers using the Bolt ride-hailing app, with compensation for Leigh Day’s 15,000 claimants estimated to exceed 200 million pounds.

The case focused on the employment terms and conditions Bolt imposes on its drivers and the level of control the company exercises over its work. After a three-week hearing in September 2024, the tribunal concluded that these factors classify Bolt drivers as workers rather than independent contractors running their own businesses. This ruling grants them rights under UK employment law, such as holiday pay and a guaranteed minimum wage.

Leigh Day, representing 15,000 drivers, stated that those involved in the legal claim are eligible for backdated compensation covering unpaid holiday pay and underpayment of the minimum wage. On average, drivers could be owed more than 15,000 pounds each. A further tribunal hearing is expected in 2025 to determine the exact compensation amounts for each claimant.

This victory for Bolt drivers builds on the precedent set by the 2021 Supreme Court ruling that classified Uber drivers as workers. Inspired by that landmark decision, Bolt drivers launched their legal claim, asserting similar issues in their working arrangements. Leigh Day, which also represented Uber drivers in their successful case, spearheaded the Bolt claim, bolstering its reputation as a leading advocate for gig economy workers.

In an attempt to preempt legal challenges, Bolt announced in August 2024 that it would begin offering holiday pay and the National Living Wage to its drivers. However, the company only compensated drivers for time spent on trips, excluding the time spent logged into the app and available for work. Leigh Day argued that this approach did not comply with employment legislation. The tribunal agreed, ruling that drivers must be paid for all logged-in time unless they are simultaneously logged into competing apps.

The tribunal’s decision could significantly reshape the gig economy landscape in the UK. With more than 100,000 Bolt drivers potentially affected, the ruling challenges the widespread practice of categorizing gig workers as independent contractors. Beyond Bolt, Leigh Day is pursuing similar claims on behalf of 700 Addison Lee drivers and hundreds of Ola drivers. The Addison Lee case is currently being heard in Watford, while the Ola case is set to begin at the London Central Employment Tribunal on 12 November 2024.

The ruling highlights the growing scrutiny of gig economy practices and the need for companies to align with employment law. By classifying drivers as workers, the tribunal has paved the way for fairer pay and working conditions in the private hire sector.