Uber is facing a challenge to its business model at an employment tribunal in Britain.
Two Uber drivers in London have brought a test case arguing the ride service is acting unlawfully by not offering paid holidays and sick pay.
The company argues that the drivers are not workers – who would have such benefits – but rather are self-employed.
Uber, which allows users of a smartphone app to book and pay for rides, has faced protests and legal action worldwide.
The London employment tribunal case is backed by the GMB, a British trade union, and if successful could lead to many more.
“This claim is vital for the thousands of Uber drivers who work in England and Wales and has implications even wider than that,” according to Annie Powell, an employment lawyer at firm Leigh Day which is representing the two drivers.
“We are seeing a creeping erosion of employment rights as companies misclassify their workers as self-employed so as to avoid paying them holiday pay and the national minimum wage,” she said.