Livery Insurance 101: Ride Sharing Platform Uber Wins Big Ruling In Brazilian High Labor Court

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The Brazilian High Labor Court ruled on Wednesday that there was no work arrangement between Uber and its drivers, contesting the driver of Sao Paulo. This is major news in the industry for livery insurance.

Brasilia’s Federal judge ruled that Uber drivers are able to disconnect from the app at any time and hold a choice based flexible working schedule.

To date, lower courts have ruled on labor questions involving Uber, but a federal court has now ruled and its decision is expected to set the standard, although not binding for similar cases.

Uber accepted the verdict, which stated in a statement that in Brazilian courts it has endorsed hundreds of previous decisions establishing that its drivers are not employees.

Uber had contended that its model is a digital broker, not an employer, and that drivers acknowledge that condition when they register.

Brazil would be the second-biggest market for Uber after the United States, and Sao Paulo is its top city by quantity of rides, ahead of New York.

The business said the court had acknowledged its platform’s creative character that partners with more than 600,000 drivers in over 100 Brazilian cities, representing more than 22 million people who use it app.

Breno Medeiros, federal labor judge, found that the drivers ‘ wide flexibility in determining where they choose to operate and the number of people they service each day are “incompatible” with an employer-employee connection.

Medeiros said the drivers ‘ take-home pay for each journey, between 75 per cent and 80 per cent of the total fare, was adequate to define Uber’s relationship as a partnership.

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