Uber facing ban in Geneva

Geneva: The Swiss canton of Geneva has said it had classified ride-hailing giant Uber as an employer, ordering a halt to its activities unless it pays the social charges for its drivers.

The head of security, employment and health in the cantonal government, Mauro Poggia, told AFP that it had conducted an in-depth judicial analysis of Uber´s case, and determined that the drivers should be considered employees and not independent contractors.

Uber drivers are currently paid for each ride and are considered self-employed which means they are not entitled to benefits including paid holidays, pensions and sick leave.

But Poggia said Geneva had "determined that there was a subordination link."

This, he said, "means that the driver is not in effect free, neither to choose his clients, nor set the price, nor pick the route, nor to contest a sudden decision to let him go."

Uber, which is facing regulatory issues in a range of countries, is therefore subject to Swiss employment law, meaning it is responsible for paying social charges for its drivers. Poggia stressed that the order is retroactive, meaning that Uber would be expected to pay social charges for all of its drivers since it entered the Geneva market in late 2014.