Uber in talks with French social security agency after driver status dispute

Uber UBER.N said on Monday it was in talks with French social security agency Urssaf, which a media report said had concluded the U.S.-based company should treat its drivers as employees.

"We are currently engaged in a collaborative, transparent, and open discussion with France's social security body, URSSAF," an Uber spokesperson said on Monday.

Urssaf told Reuters it does not comment on individual cases or ongoing matters for reasons of confidentiality.

French investigative publication Revue21 reported that Urssaf considered that 71,194 drivers who worked for Uber between 2019 and 2022 on independent-contractor agreements should have been defined as employees.

The agency was seeking 1.2 billion euros ($1.4 billion) in social security contributions and a further 512 million euros in penalties, Revue21 added.

Uber, one of the world's largest ride-hailing companies, has faced regulatory and legal scrutiny across Europe.

France's Supreme Court last year ruled that drivers using the Uber app were independent contractors, rejecting the existence of a relationship of subordination and upholding an earlier ruling of the Paris Court of Appeal.

"Regarding the status of drivers, recent French Supreme Court rulings have confirmed they are independent workers and clarified the framework we operate in," the Uber spokesperson added in a statement.

In Germany, courts have restricted some app-based ride-hailing configurations unless they comply with passenger-transport rules. In Italy Uber's licensed services have faced long-running court challenges and opposition from taxi drivers.

Court disputes in France and the Netherlands continue to test how ride-hailing platforms can operate and how drivers should be classified. While the French Supreme Court's ruling was not retroactive, it is expected to influence pending or future rulings.

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-Reporting by Gianluca Lo Nostro; Editing by Richard Lough and Alexander Smith/Reuters