Employment rights for app-based taxi and PHV drivers come under scrutiny as government discusses new plans

The UK Government has reiterated its plans to modernise employment rights for gig economy workers, including app-based taxi drivers working for platforms like Uber and Bolt. The response came after Ian Byrne, Labour MP for Liverpool West Derby, asked what action was being taken to protect these drivers’ rights.

Justin Madders, Minister of State at the Department for Business and Trade, pointed to the forthcoming Employment Rights Bill. The Bill is expected to form the first phase of broader labour market reforms. According to the Minister, the new legislation will establish a baseline of protection for all workers and address issues created by changing technologies and work models.

One of the central aims is to consult on a simpler framework that clearly separates workers from the genuinely self-employed. This follows long-standing legal disputes between app-based operators and their drivers over employment classification.

Over recent years, companies such as Uber and Bolt have faced legal and regulatory pressure over their treatment of drivers. The Supreme Court ruled in 2021 that Uber drivers were workers, not self-employed contractors. This gave drivers the right to the minimum wage, holiday pay and other basic protections. Uber subsequently adjusted its UK model to include some of these entitlements, but only during active trips, not while waiting or looking for fares.

Bolt and other operators have faced similar criticism. Unions and legal campaigners argue that many drivers remain in a grey area, with limited rights despite their dependency on the platforms for income. Operators, on the other hand, have defended their models, saying flexibility is key for drivers and the structure supports choice.

The Government’s plan to reform the classification system could have major implications for the private hire industry. If adopted, the changes may compel operators to reassess how they engage drivers and provide minimum standards across the sector.

Justin Madders said:

“Our Plan to Make Work Pay will modernise the UK labour market and address challenges thrown up by new trends and technologies. The Employment Rights Bill is the first phase of delivery, and will provide a new baseline of security for workers. Once implemented, it will raise the minimum floor of employment rights, raise living standards across the country and level the playing field for businesses engaged in good practices.

We have also committed to consult on a simpler employment status framework, distinguishing between workers and the genuinely self-employed, ensuring that all workers have the comfort of protection at work.”

This article was first published on the TaxiPoint website.