Taxi driver found to be employee and worker, awarded £5,181 for unlawful deductions
A private hire taxi driver was found to be an employee of the vehicle owner and a worker of the dispatch company. He was awarded £5,181.48 for unlawful deduction of wages, but his age discrimination claim was dismissed.
1 min read · Last updated 18 May 2026
Case details
- #employment-status
- #worker-status
- #employee-status
- #taxi-driver
- #private-hire
- #age-discrimination
- #unlawful-deduction
Key facts
- The Claimant worked as a taxi driver for the First Respondent from July 2014 to 14 March 2020.
- The Claimant was a registered driver with the Second Respondent from 1 March 2009 to 14 March 2020.
- The Claimant drove a taxi owned by the First Respondent and received 50% of fares.
- The Second Respondent operated a computerised dispatch system (iCabbi) and enforced byelaws on drivers.
- The Claimant was found to be an employee of the First Respondent and a worker of the Second Respondent.
- The age discrimination claim was dismissed; the Claimant succeeded in part on unlawful deduction of wages.
Timeline
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Claimant licensed to drive private hire vehicle
The Claimant became licensed to drive a private hire vehicle after seeing an advert from the Second Respondent.
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Claimant registered as driver with Second Respondent
The Claimant applied, underwent interviews and training, and became a registered driver with the Second Respondent.
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Claimant started working as driver
The Claimant began working as a taxi driver, initially for a shareholder Mr Parkinson.
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Claimant started working for First Respondent
The Claimant ceased working for Mr Parkinson and began working as a driver for the First Respondent, Mr Tidman.
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First Respondent reduced taxi availability
The First Respondent unilaterally reduced the hours the taxi was available from 6am-6pm to 6am-5pm.
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Claimant's work ended
The Claimant stopped working as a taxi driver.
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Claim presented to Tribunal
The Claimant presented a claim form to the Employment Tribunal.
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Preliminary hearing
A preliminary hearing identified issues including employment status.
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First substantive hearing
The Tribunal heard evidence on preliminary issues regarding employment status.
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Second substantive hearing
The Tribunal heard further submissions following the Uber Supreme Court decision.
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Judgment on preliminary issues
Employment Judge Harris found the Claimant was an employee of the First Respondent and a worker of the Second Respondent.
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Remedy judgment
The Tribunal dismissed the age discrimination claim and awarded £5,181.48 for unlawful deductions.
The legal issue
The tribunal had to decide whether the taxi driver was an employee or worker of the two respondents, and whether he was unfairly dismissed, discriminated against on grounds of age, and entitled to various payments including notice pay, holiday pay, and arrears of pay.
The outcome
The tribunal ruled that the taxi driver was an employee of the first respondent (the vehicle owner) from July 2014 to March 2020, and a worker of the second respondent (the dispatch company) from March 2009 to March 2020. The age discrimination claim was dismissed, but he succeeded in part on unlawful deduction of wages.
Compensation awarded:
- Unlawful deduction of wages: £5,181.48
Lessons & takeaways
- Taxi drivers working under similar arrangements may be employees or workers, entitling them to employment rights like minimum wage and holiday pay.
- The distinction between employee and worker depends on the degree of control and integration into the business, not just the label used in contracts.
- Age discrimination claims require evidence of less favourable treatment because of age; a dismissal without more may not suffice.
- Unlawful deduction claims can succeed even if other claims like unfair dismissal or discrimination fail.
This case illustrates how employment status can be a complex but crucial issue for taxi drivers and other gig-economy workers. The driver had worked for years under arrangements that left him uncertain whether he was an employee, a worker, or self-employed. The tribunal carefully examined the level of control exercised by the vehicle owner and the dispatch company, concluding that he was an employee of the former and a worker of the latter.
What the tribunal decided
The tribunal found that the driver was an employee of the vehicle owner because he was integrated into the business, worked regular hours, and received a share of fares. He was also a worker of the dispatch company because he was required to follow its rules and use its dispatch system. However, his claim for age discrimination failed because he could not show that his dismissal was because of his age rather than other factors.
What could have been done differently
The respondents could have avoided the dispute by clearly defining the driver's employment status from the start and ensuring they complied with employment laws. The vehicle owner, in particular, should have provided a written contract and paid proper wages. The dispatch company could have structured its relationship with drivers to avoid creating worker status if that was not intended.
Why this matters
This case is a reminder that employment status is determined by the reality of the working relationship, not just paperwork. For taxi drivers and similar workers, understanding whether they are employees or workers is key to knowing their rights to minimum wage, holiday pay, and protection from unlawful deductions. The award of £5,181.48 for unlawful deductions shows that even if other claims fail, workers can still recover money owed to them.
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