Sao Paulo judge rules Uber drivers are employees, deserve benefits

A judge in Brazil’s biggest city ruled this week that a driver using the Uber ride-hailing app is an employee of the San-Francisco-based company, threatening its business model in one of its biggest markets.

Uber said it would appeal the decision on Tuesday by Judge Eduardo Rockenbach Pires at the regional labour court in Sao Paulo, which was made public in recent days.

“By connecting drivers and users, Uber creates thousands of flexible opportunities for generating income,” the company said in a statement. 

Pires ordered Uber to pay the driver 80,000 reais ($25,000), including compensation for holidays, contribution to a severance fund and 50,000 reais in “moral damages” related to attacks from taxi drivers upset with Uber’s competitive pricing model.