Legal Updates

An external service suppliers using its own vehicle will not be deemed an employee

February 22, 2016
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A taxi driver performed courier services for a company for more than 20 years. When the company sought to reduce the driver's remuneration the taxi driver claimed it was appreciable deterioration of employment conditions and he resigned and demanded severance payment.

The Labor Court held that unlike another case where a company provided its service suppliers with a company vehicle in this case the taxi was owned by the driver, sometimes the driver supplied a fill-in and the monthly remuneration varied. Thus there were no employer-employee relationship and the claim was rejected.