Private transportation application Screw has lost a legal challenge against classifying its drivers as “workers”, in a ruling that could land the company a £200m bill and open the door for thousands of people to gain employment benefits from the company.

About 10,000 current and former private drivers took the Estonian company to the Labor Court seeking to be paid the minimum wage and granted labor benefits.

However, Bolt resisted the claims, maintaining that the drivers do not qualify as “workers” and that his contract with them is for independent contractors.

This is the latest case on the status of gig economy workers for Bolt following a Tribunal hearing in September.

In today’s final hearing, the judge had to address whether the drivers were “workers” within the meaning of the National Minimum Wage Act and, if the drivers are “workers”, for what periods under this Act.

TO judgment was handed down this morning, in which the Court ruled that the Bolt drivers represented are not self-employed contractors running their own business, as Bolt claimed.

Lawyers for the claimants believe the compensation owed to their clients could amount to more than £200m.

Instead, the terms and conditions Bolt applies to the drivers’ relationship with the company, and the control the company has over the drivers’ work, mean they are workers, the court ruled.

By being defined as “workers”, drivers will be entitled to labor rights and the protection of labor law.

Another hearing is expected to be held next year, when the Labor Court will decide how much compensation for unpaid leave and loss of earnings each driver will receive.

While this decision stands, Bolt could also try to appeal this ruling, which has not yet been decided.

In a similar matter in 2021, the UK Supreme Court ruled that Uber drivers are workers and not self-employed contractors.

A Bolt spokesperson said: “Drivers are at the center of what we do, and we have always supported the overwhelming majority’s decision to remain independent contractors, protecting their flexibility, personal control and earning potential.”

“We will continue to engage with drivers as we carefully review our options, including grounds for appeal, ensuring we are helping drivers succeed as entrepreneurs and grow on their own terms,” ​​they added.