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

Delta mosque holds silent prayer vigil for Christchurch victims

Event emphasized the importance of acceptance, solidarity in the wake of the attack on Muslim worshippers

North Delta Huskies battled the odds to win B.C. basketball title

“All the cards were stacked against us,” says Huskies coach

18 months conditional term for indecent caller

Incidents reported in Surrey, White Rock and Langley

Delta needs education about racism, says new committee

Deltassist’s new Organizing Against Racism and Hate committee held a pair of forums last week

A Surrey Mountie’s tale of reconciling her family’s history with the LGBTQ+ ‘purge’

PART TWO: Cpl. Sturko is spokeswoman of Surrey RCMP after her great uncle was ‘purged’ from the RCMP

VIDEO: The ‘most cosmopolitan’ of butterflies could migrate to B.C.

The painted lady butterfly will likely arrive this summer from Southern California

Pedestrian killed, two injured in three-vehicle crash in Coquitlam

Road closures in effect following collision

Is it a homicide? B.C. woman dies in hospital, seven months after being shot

Stepfather think Chilliwack case should now be a homicide, but IHIT has not confirmed anything

Sources say Trudeau rejected Wilson-Raybould’s conservative pick for high court

Wilson-Raybould said Monday “there was no conflict between the PM and myself”

First Nations public art piece stolen in Nanaimo

Spindle Whorl went missing over the weekend, according to Nanaimo RCMP

Father-son duo at B.C. Children’s Hospital helps new dads fight depression

The pair teamed up to introduce the only known research-based mindfulness workshop for new dads

B.C. NDP moves to provide tax credits, tax cut for LNG Canada

Provincial sales tax break of $596 million repayable after construction

B.C. river cleanup crew finds bag of discarded sex toys

Chilliwack volunteers stumble on unexpected find while removing 600 lbs of trash from riverway

Trudeau sells housing plan in visit to hot real estate market in B.C.

Trudeau said the budget contains measures to help first-time buyers

Most Read