Addison Lee has lost its appeal at the Employment Appeal Tribunal (EAT) following a previous ruling on September 25 last year that a group of drivers were entitled to national minimum wage and holiday pay rights.
Addison Lee has the right to appeal against the ruling at the Court of Appeal.
GMB, the union for private hire drivers, believes the ruling now means “thousands of Addison Lee drivers are entitled to receive National Minimum Wage and holiday pay”.
Companies like Addison Lee, Uber and Hermes have been at the centre of legal challengers from drivers for the companies that argue they are workers, rather than being self-employed.
Uber recently launched a new appeal against a separate tribunal ruling that went against it in November last year.
Sue Harris, GMB legal director, said: “This is another huge win for GMB.
“Once again the courts have agreed Addison Lee drivers are legally entitled to workers’ rights such as the national minimum wage and holiday pay rights. “Other employers should take note – GMB will not stop pursuing these companies on behalf of our members.”
Despite losing appeals at court, many delivery and private hire driver companies are yet to make wholesale changes to their employment practices.
A statement from Addison Lee said: "We note the appeal verdict, which we will carefully review. Addison Lee is disappointed with the ruling as we enjoy a positive relationship with the vast majority of our 3,800 driver partners.
"In common with most of the industry, the majority are self-employed, and with earnings at a record high."