Significant victory for Addison Lee drivers as tribunal backs claims on pay and working time
More than 900 drivers bringing claims against Addison Lee have secured a major legal victory after an employment tribunal ruled overwhelmingly in their favour on how compensation should be calculated.
Posted on 26 March 2026
The judgment, handed down on 19 March 2026 following a remedy hearing in the Watford Employment Tribunal, marks a significant step forward for drivers who have been fighting for almost a decade against the London-based private hire operator on worker status.
The tribunal previously ruled in January 2025 that drivers are entitled to workers’ rights such as holiday pay and at least the minimum wage.
This latest judgment determines the principles that will now be used to calculate how much compensation drivers are owed. The tribunal found in favour of the drivers on almost every key issue, and these decisions are very likely to result in higher value claims.
Lawyers at Leigh Day estimate total compensation for the drivers is likely to exceed £20 million.
One of the most important findings relates to periods during the Covid-19 pandemic, when many drivers stopped working due to health concerns or a lack of available work.
Two of the three lead claimants who gave evidence on behalf of the drivers had taken substantial breaks during Covid. The tribunal rejected Addison Lee’s argument that these gaps should curtail the lead claimants’ claims.
Instead, it found that claim periods continued throughout these breaks, including periods of up to 11 months. This means many drivers are likely to be able to claim compensation covering their full time working with Addison Lee.
The tribunal also backed the drivers’ position on how their working time should be assessed. Drivers often spent long periods logged into the app waiting for jobs. Addison Lee argued that large portions of this ‘empty time’ should not count as working time.
The tribunal disagreed, ruling that this time should count as working time, except in limited circumstances when drivers remained logged in long after finishing a shift. This finding is likely to have substantial impact on the value of claims.
The judgment confirms that drivers are entitled to 5.6 week’s paid holiday per year and payment for that holiday when they leave, whether or not it was previously taken. The tribunal also confirmed that drivers were paid on a weekly basis, rejecting Addison Lee’s attempt to use a longer pay reference period. This increases the likelihood of identifying NMW shortfalls.
On expenses, the tribunal largely agreed with the drivers’ approach, including how fuel costs should be calculated. It rejected Addison Lee’s proposal to use whichever method produced the lowest figure.
Drivers will also receive interest at eight per cent per year on holiday pay compensation owed.
The tribunal also confirmed that newer claims can be combined with existing ones, allowing more drivers to benefit without restarting legal proceedings.
While exact compensation figures are yet to be finalised, the judgment means awards are now expected to be significantly higher than Addison Lee had argued.
The case is expected to continue, with an appeal hearing listed for January 2027. Lawyers however say this latest judgment represents a major milestone and strengthens the drivers’ position in any future proceedings or settlement discussions.
The drivers are represented by Liana Wood, employment solicitor at Leigh Day.
Liana 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.
“It is particularly important that the tribunal confirmed drivers’ claims were not broken by the Covid pandemic, meaning many can recover compensation for their full periods of work.
“Many of the drivers we represent have waited over eight years to receive compensation, with Addison Lee making attempts to drag out the legal process at every stage. We now look forward to finally securing the compensation our clients are owed.”
Addison Lee driver claim
Leigh Day acts on behalf of Addison Lee drivers who claim that they should be treated as workers rather than self-employed contractors. Call us on 0203 780 0424
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