By Ashley Young-
Human rights firm Leigh Day has begun an employment claim on behalf of Amazon drivers, estimating that 3,000 individuals could be eligible for compensation over their employment status.
The online retail giant may have to pay drivers an average of £10,500 for each year they have delivered for the company, in a total compensation package potentially worth a total of £140m, it is predicted.
Lawyers from Leigh Day solicitors acting on behalf of their clients say drivers making deliveries on behalf of Amazon via ‘Delivery Services Partners’ are classified as self-employed, so they do not benefit from holiday pay, National Minimum Wage and an employment contract.
Leigh Day is launching a “no win, no fee” action against Amazon. It believes at least 3,000 workers would be able to claim if they joined the action, with lawyers estimating the actions could give an average of £10,500 in compensation for each year a driver has worked for the retail giant. This would come in at a total bill of £140 million.
They also argue that drivers do not benefit from rights including the minimum wage and paid holiday. The firm argues that, because of the way Amazon dictates drivers work, they should be entitled to these rights.
Leigh Day is launching a “no win, no fee” action against Amazon. It believes at least 3,000 workers would be able to claim if they joined the action, with lawyers estimating the actions could give an average of £10,500 in compensation for each year a driver has worked for the retail giant. This would come in at a total bill of £140 million.
Kate Robinson, solicitor in the employment team at Leigh Day, said: ‘Drivers delivering for Amazon have to work set shifts and book time off, yet Amazon claim they are self-employed. Paying out compensation of £140m sounds like a large bill to foot, but for a company that turned a profit of £5.8bn in the first three months of 2021, it’s a drop in the ocean. For drivers on the other hand, earning at least National Minimum Wage, getting holiday pay and being under a proper employment contract could be life changing.’
As well as Amazon, Leigh Day is bringing claims against Uber, Addison Lee, delivery company Stuart and used vehicle marketplace BCA.
Lawyers predicted a ‘significant class action’ against Uber following a decision by the Supreme Court in February this year that its drivers should be classed as workers with access to the minimum wage and paid holidays.
The cab company argued that drivers were self-employed independent contractors. The Supreme Court rejected this argument, ruling that Uber London contracted with passengers and engaged drivers to carry out bookings for it.