On Monday, November 17 2025, the New Zealand Supreme Court ruled that four Uber drivers are employees rather than independent contractors, dismissing Uber’s appeal to the Court of Appeal. The decision follows a 2024 Court of Appeal ruling and a 2022 Employment Court ruling that had already favored the drivers, and it applies to the four drivers represented by the unions E Tū and First Union.
The court’s reasoning focused on Uber’s control over the drivers. While Uber argued that drivers enjoy flexibility in choosing their hours and can work for competitors, the court found that Uber’s integration of drivers into its business, the requirement that passengers contract with Uber rather than the individual driver, and the company’s oversight of fares and safety standards outweighed that flexibility. The ruling therefore reclassifies the drivers as employees under New Zealand employment law.
The immediate consequence is that the four drivers are now entitled to employee benefits such as minimum wage, paid leave, and KiwiSaver contributions. The decision also removes the legal barrier to collective bargaining for Uber drivers in New Zealand, a development welcomed by workers’ unions who see it as a step toward greater labor rights for gig‑economy workers.
Uber’s General Manager for Australia and New Zealand, Emma Foley, said the judgment “casts significant doubt on contracting arrangements across New Zealand.” She added that the ruling currently applies only to the four drivers and that Uber and Uber Eats will continue to operate as normal, but that the company is reviewing its engagement strategy in the country.
The ruling sets a precedent that could influence similar decisions in other jurisdictions. It also clashes with the New Zealand government’s proposed Employment Relations Amendment Bill, which critics argue would allow companies to classify workers as contractors. Unions are urging the government to abandon the bill in light of the court’s decision.
Financially, the ruling could increase Uber’s labor costs in New Zealand, where the company estimates it contributed NZ$1.5 billion to the economy in 2024. While no specific cost figures are disclosed, the potential for higher wages, benefits, and union negotiations suggests a material impact on Uber’s profitability in the region.
In response, Uber may renegotiate driver contracts, accelerate investment in autonomous vehicle technology, and monitor regulatory developments in other markets to mitigate the impact of this precedent. The company’s strategy will likely involve balancing cost controls with the need to maintain a flexible driver workforce while complying with evolving labor laws.
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