Addison Lee considers further appeal as tribunal rules in favour of drivers

Addison Lee is considering an appeal against an employment tribunal ruling over compensation to drivers who should have been treated as “workers” rather than self-employed contractors.

An employment tribunal in Watford has ruled in favour of more than 920 Addison Lee drivers as to how their compensation and working time should be calculated. Lawyers at Leigh Day, which represented the drivers, estimate that drivers’ total compensation is likely to exceed £20 million.

Addison Lee had argued that the three lead claimants should receive compensation of between around £500 and £4,000. But the court supported Leigh Day’s view that the claimants could be owed between £35,000 and £65,000 each, plus interest.

The judgment confirmed drivers were entitled to 5.6 weeks of paid holiday per year, and that drivers are paid on a weekly basis. The court backed the drivers’ position on how their working time should be assessed. Addison Lee argued that the time drivers spend logged into the app waiting for jobs should not count as working time, but the tribunal ruled it should count, except when drivers remained logged in after finishing a shift.

The tribunal also confirmed that newer claims can be combined with existing ones, and drivers will receive interest at 8% per year on holiday pay compensation owed. The court also agreed with their approach on how fuel costs should be calculated.

Liana Wood, employment solicitor at Leigh Day, said: “This is an excellent result for Addison Lee drivers who have succeeded on almost every significant issue before the tribunal. The judgment recognises the reality of the work these drivers carried out over many years and ensures they will be properly compensated for unpaid holiday and national minimum wage.”

She continued: “It is particularly important that the tribunal confirmed drivers’ claims were not broken by the Covid-19 pandemic, meaning many can recover compensation for their full periods of work. We look forward to finally securing the compensation our clients are owed.”

The tribunal previously ruled in January 2025 that drivers were entitled to workers’ rights such as holiday pay and minimum wage. An appeal hearing is listed for January 2027.

An Addison Lee spokesperson said: “We are considering our options, including our right of appeal, following the recent Employment Tribunal judgment. It is clear from the judgment itself that this does not offer a decision which can be applied to the wider group claims. With both sides having submitted appeals, and potentially more appeals to come, there is clearly a long road ahead to reach a final outcome.”