What is the Uber settlement in Australia?

Uber Class Action Settlement in Australia: A Landmark Victory

On December 2nd, 2024, Victoria’s Supreme Court approved a groundbreaking settlement of $271.8 million in the Uber class action lawsuit, marking a significant milestone for gig economy workers in Australia.

The settlement stemmed from a class action filed by over 5,000 Australian Uber drivers, who alleged that the company misclassified them as independent contractors rather than employees, depriving them of entitlements such as minimum wage, superannuation, and other benefits.

After years of legal proceedings, the双方 reached an agreement that provides a significant payout to affected drivers. The settlement includes:

• $240 million in compensation for Uber drivers who were active in Australia between August 31st, 2019, and October 7th, 2022.
• $27 million in legal costs and funding.
• A $4.5 million payment to cover the costs of administering the settlement.

The settlement is a major victory for gig economy workers, as it recognizes their status as employees and entitles them to fair treatment. It serves as a precedent for similar cases involving platform companies that rely on independent contractors.

The Uber settlement also sends a clear message to other gig economy companies that they must comply with Australia’s labor laws and ensure that their workers receive the protections and benefits they deserve.

The successful resolution of the Uber class action is a testament to the power of collective action and the determination of gig economy workers to fight for their rights. It is a significant step towards ensuring fairness and equity in the rapidly evolving world of work.