Uber has lost its appeal against an earlier ruling on the employment rights of drivers.
The operator was fighting a ruling that says drivers are entitled to the minimum wage, sick pay and paid holiday.
Today, the High Court has thrown out the appeal after the ruling last year told the company to treat drivers as workers rather than self-employed independent contractors.
Two drivers for the company won a landmark ruling last year arguing they were entitled to more rights.
James Farrar who bought the case against Uber told the BBC: “It’s a huge relief, I really hope it will stick this time and hope Uber will respect the ruling of the court and now do the right thing and obey the law in the this country.”
Tom Elvidge, Uber UK’s Acting General Manager, said: “Almost all taxi and private hire drivers have been self-employed for decades, long before our app existed. The main reason why drivers use Uber is because they value the freedom to choose if, when and where they drive and so we intend to appeal.
“The tribunal relies on the assertion that drivers are required to take 80% of trips sent to them when logged into the app. As drivers who use Uber know, this has never been the case in the UK.
“Over the last year we have made a number of changes to our app to give drivers even more control. We’ve also invested in things like access to illness and injury cover and we’ll keep introducing changes to make driving with Uber even better.”
Uber is expected to pursue a further appeal possibly to the Supreme Court.