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

Chefs dominate the wild “Untamed Kootenays”

Sixty lucky guests were treated to a special night of culinary excellence… Continue reading

Eight U.S. senators write to John Horgan over pollution from Elk Valley mines

The dispute stems from Teck Resources’ coal mines

People throwing food at a bear in Fernie alarms conservation groups

Wildlife conservation groups in the Elk Valley are encouraging individuals to be… Continue reading

Sushi, sake and silk kimono

“The Kimono of Ichimaru” opening night at Fernie Museum attracts sellout crowd

Mexico-bound Tour Divide riders complete first day, pass through Fernie

Divide riders looking strong as they finish first leg of 4160 km race

BREAKING: Trans Mountain expansion project gets green light, again

Prime Minister Justin Trudeau announced the decision in Ottawa on Tuesday afternoon

Elk Valley Bulls RFC reclaim Kootenay Cup

Elk Valley beats Cranbrook 7-5 to win Kootenay Cup; team off to provincials in September

UPDATE: Two-year-old involved in Chilliwack pool drowning has died

Toddler was reported to not be breathing as air ambulance called out Thursday afternoon

B.C. high school withdraws notices for temporary dress code

Parents previously told the Interior News they felt there was inadequate consultation over the rules

VIDEO: Toronto Raptors announcer credited with calming crowds after shooting

Matt Devlin, the Raptors’ play-by-play announcer since 2008, was praised for preventing panic from spreading

Mini-horse visits residents at Lower Mainland care home

Gunner turned a visit with grandpa into a major event for everyone at the residence

Women sue former Vancouver cop over alleged sexual abuse during pimp case

Two women claim James Fisher caused psychological trauma during the Reza Moazami investigation

First ever Indigenous person to join the RCMP to be honoured in B.C.

Hawk Kelly said becoming a Mountie was his dream job as a kid

Deadline for cabinet to decide future of Trans Mountain expansion is today

International Trade Minister Jim Carr described the decision as ‘very significant’

Most Read