Landmark ruling: Uber Australia drivers not employees, Fair Work Ombudsman rules

The Fair Work Ombudsman ruled Uber drivers in Australia are not employees and therefore are not entitled to receive benefits such as sick leave or minimum wage. Photo / Getty Images

Australia's workplace regulator has delivered a landmark ruling in finding Uber drivers are not employees.

The Fair Work Ombudsman's decision means Uber drivers are not entitled to receive the minimum wage, annual leave, sick leave or any benefits that employees receive, the ABC reports.

According to ABC, the Fair Work Ombudsman has spent the last two years looking into whether the US-based rideshare giant had engaged in "sham contracting" by misrepresenting its drivers as people who run their own business in order to avoid paying employee benefits.

Fair Work Ombudsman Sandra Parker said the weight of evidence from their investigation established that the relationship between Uber Australia and the drivers is not an employment relationship.

"For such a relationship to exist, the courts have determined that there must be, at a minimum, an obligation for an employee to perform work when it is demanded by the employer," Parker said.

"Uber Australia drivers have control over whether, when, and for how long they perform work, on any given day or on any given week.

"Uber Australia does not require drivers to perform work at particular times and this was a key factor in our assessment that the commercial arrangement between the company and the drivers does not amount to an employment relationship."

Uber isn't done batting away litigation in Australia however. The Financial Times reported last month that more than 6000 taxi drivers and operators have filed a class action lawsuit alleging Uber destroyed their livelihoods and operated illegally.

The class action alleges Uber have acted in complete disregard for any regulation. The lawsuit says the ride share company knew its Australian business was illegal because its drivers were not properly licensed and did not have proper accreditation to carry passengers.