SAO PAULO (Reuters) – Uber announced on Thursday that it is rejecting a ruling from a Brazilian labor court that orders the ride-hailing firm to pay 1 billion reais ($205 million) in fines for irregular working relationships with drivers on its app.
The ruling, handed down by a Sao Paulo state court, also requires Uber to acknowledge its employment relationships with all the drivers on its app and register their professional work cards. Failure to comply with this requirement will result in a penalty of 10,000 reais for each unregistered worker.
The lawsuit was filed in November 2021 with Brazil’s public prosecutor’s office and accused Uber of exerting control over the activities of its professionals, which in turn constitutes an employment relationship.
Uber has immediately announced its intention to appeal the decision and will not implement any of the measures outlined in the ruling until all available legal resources have been exhausted.
“There is a clear legal uncertainty,” stated Uber in a press release, referring to past legal precedents involving other companies such as delivery platforms Lalamove, Loggi, and Ifood, as well as the taxi app 99.
($1 = 4.8677 reais)
Reporting by Andre Romani; Writing by Carolina Pulice; Editing by Leslie Adler
Credit: The Star : Tech Feed
