Addison Lee must pay six-figures to continue legal claim defence

A judgment handed down by the Employment Appeal Tribunal (EAT) on Thursday (July 18) upheld the decision that private hire cab and courier company Addison Lee must pay £125,000 in deposit orders to continue with certain parts of its defence in workers’ rights legal challenge. 

The group legal claim against Addison Lee is brought by law firm Leigh Day, arguing on behalf of over 600 drivers that they should be classed as workers and entitled to workers’ rights such as holiday pay and the national minimum wage. 

The claim was originally brought by Leigh Day on behalf of three drivers in relation to the period from July 2014 to 24 May 2016.

In September 2017, the Employment Tribunal (ET) found that the three drivers are workers and should be entitled to workers’ rights.

Addison Lee attempted unsuccessfully to appeal this decision to the EAT and Court of Appeal and finally a settlement was reached for these drivers in February 2024.  

Addison Lee argues that the 2017 judgment does not apply to the hundreds of other drivers who have since brought claims. 

Addison Lee was ordered by the Employment Tribunal in 2023 to pay £125,000 deposits orders if it was to continue with certain parts of its defence because it had little chance of succeeding.

If the company decided not to pay the deposit orders, it would have conceded worker status for over 300 drivers who worked for them between 2014 and 2016.

The company decided to pay the £125,000, indicating that it intends to continue to argue that drivers were not workers during any period and therefore are not entitled to workers’ rights.  

Addison Lee appealed to the EAT regarding the Deposit Order judgment and in a judgment on 18 July 2024, the EAT dismissed Addison Lee’s appeal in its entirety.  

The final liability hearing is scheduled to take place from 28 October to 24 November 2024, which will decide whether the rest of the claimants are workers and entitled to workers’ rights. 

Liana Wood, Leigh Day employment lawyer, said: “Our ongoing legal claim argues that the hundreds of drivers we represent, many of whom worked at a similar time as the three drivers who have received a settlement and workers’ status, should be entitled to workers’ rights.

“It is encouraging that Addison Lee’s latest appeal has been rejected in its entirety, which signifies the strength of our argument that drivers should be classed as workers.

“I look forward to the final hearing in October so that hopefully the drivers will finally receive what they are owed.”