Addison Lee must pay six-figure deposit

A judgment handed down by the Employment Appeal Tribunal (EAT) on Thursday, 18 July 2024, 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 a workers’ rights legal challenge.

The group legal claim against Addison Lee is brought by law firm Leigh Day, representing over 600 drivers who argue that they should be classified as workers and entitled to rights such as holiday pay and the national minimum wage. Initially, the claim involved three drivers concerning the period from July 2014 to 24 May 2016. In September 2017, the Employment Tribunal (ET) found that these three drivers were workers and entitled to workers’ rights. Addison Lee's appeals to the EAT and Court of Appeal were unsuccessful, leading to a settlement for these drivers in February 2024.

Addison Lee contends that the 2017 judgment does not apply to the hundreds of other drivers who have since filed claims. In 2023, the Employment Tribunal ordered Addison Lee to pay £125,000 in deposit orders to continue its defence, due to its low likelihood of success. Failure to pay would mean conceding worker status for over 300 drivers who worked for the company between 2014 and 2016. Addison Lee chose to pay the deposit orders, indicating its intent to argue that its drivers were not workers during any period and thus not entitled to workers’ rights.

Addison Lee appealed the Deposit Order judgment, but the EAT dismissed the appeal entirely on 18 July 2024. The final liability hearing is set for 28 October to 24 November 2024, where it will be determined if the remaining claimants are indeed workers and entitled to corresponding rights.

Liana Wood, Leigh Day employment lawyer, commented: “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.”