Meanwhile, Deliveroo, the food-delivery service, is currently battling the IWGB union over its riders' employment status and in May, taxi service Addison Lee lost an appeal over whether drivers were independent contractors or employees with rights to benefits.
Wednesday's ruling focuses on a central tenet of the gig economy. Treating workers as contractors, not employees, allows companies to keep costs low, cut down on red tape and avoid paying benefits. Uber has long argued the model benefits workers in the gig economy by giving them flexibility and choice in when they work and how much.
The court looked closely at the relationship between Smith and Pimlico Plumbers.
"Although the contract did provide him with elements of operational and financial independence, Smith's services to the company's customers were marketed through the company," Judge Nicholas Wilson said in a summary of the case.
Pimlico's chief executive officer, Charlie Mullins, and its lawyers tried to play down the importance of the ruling, arguing that lawmakers are currently reviewing the country's employment laws.
"For those who think this is a victory for poorly paid workers everywhere, against large corporations who exploit their lack of bargaining power, think again," Mullins said, adding that he was "disgusted" by the ruling. The company had already lost twice at lower courts.
Lawyers, however, said the ruling brought clarification on workers' rights.
"This welcome decision clarifies how people in the gig economy fit into the workplace ... ," said Stephen Morrall, an employment specialist at Hunters Solicitors.
- Bloomberg