A Brazilian court slapped Uber with a $190 million fine for emotional harm to drivers, a decision the company plans to appeal.
The São Paulo court’s decision applies all over Brazil. Of the fine, 90% goes to an unemployment fund. The other 10% helps driver groups.
Uber must also list its drivers as employees. Failure to do this will cost Uber about $1,900 per day for each driver.
The Public Labor Ministry launched the case in 2021. The court agreed that Uber has strong control over its drivers.
Renan Kalil, an investigator, said this case needed detailed legal study. Uber plans to fight the verdict.
The company won’t make any changes until it uses all legal options. They say the ruling creates uncertainty.
Uber serves 30 million users in Brazil, with a million drivers. They operate in about 500 towns and cities.
Background
Uber has been operating in Brazil for years, becoming a popular choice for urban travel. The case against Uber is not the first of its kind.
In multiple countries, Uber has faced legal challenges about driver employment status. These legal issues often focus on whether drivers are contractors or employees.
The São Paulo court’s ruling could set a precedent for other labor cases in Brazil.
Uber’s global operations have long sparked debates about labor rights. The company argues that it offers flexible work schedules for drivers.
Critics, however, say that Uber avoids providing benefits by not classifying drivers as employees.
This fine is one of the largest Uber has faced for labor issues. It could impact how other tech firms treat their workers in Brazil.
This ruling comes at a time when gig economy jobs are under scrutiny globally.
As the gig economy grows, the question of worker rights continues to gain importance.