Uber said it would appeal the Employment Court's decision on Tuesday - the day after Labour Day, a public holiday in NZ - that raises the possibility of wider benefits across its Kiwi workforce.
"Uber has bullied its way into cities all over the world with a deliberate strategy of breaking the law and exploiting drivers. That ends here in Aotearoa today," First Union's Anita Rosentreter said.
"This is a landmark legal decision not just for Aotearoa but also internationally. What a way to finish Labour weekend!"
The case was brought by First Union and E Tu union last year on behalf of four drivers who worked for Uber from 2016.
They asked the court to consider a declaration of their employment status, which in NZ is central to the obligations that workplaces have to their workers.
Chief judge Christina Inglis found all four to be entitled to that declaration.
Ms Inglis said the ruling did not instantly confer employee status to other Uber drivers as the court was not asked to do so, but it "may well have a broader impact".
"Particularly where, as here, there is apparent uniformity in the way in which the companies operate, and the framework under which drivers are engaged," she said.
Council of Trade Unions president Richard Wagstaff hailed the ruling.
"Everyone who works for Uber, and similar gig economy companies, deserve to be treated as employees," he said.
"These drivers deserve protection under New Zealand's employment law, including pay, guaranteed hours, leave, KiwiSaver (superannuation) contributions, and the right to unionise."
One driver named in the case, Praful "Bill" Rama, said he had won justice.
"We are employees. It's not a question of what we signed or what Uber says we are. The Court has looked at the reality of our relationship with Uber and said that drivers are employees," he said.
"This will mean drivers will have a say, not just be subject to the control of Uber."
Uber spokesman Danny Cowan said the company was "disappointed by the Employment Court's decision, particularly considering the same court in 2020 ruled a rideshare driver using the Uber app was not an employee".
"Gig workers play an important role in our communities and economy, and Uber is committed to improving standards for all independent workers, across all platforms. Kiwi drivers consistently tell us that the flexibility that comes with driving with Uber is what they value most," he said.
Workplace Relations Minister Michael Wood said he was still digesting the ruling but noted "it appears to be a significant ruling, in respect to the classification of these workers will need to further understand whether that has broader implications".
"What it clearly does point to is this area in the law about who's an employee and who's a contractor ... the government has a view that there are cases of mis-classification out there."
While Uber readies an appeal, First Union says it will launch a recruitment drive among NZ's estimated 7000 Uber drivers and would lodge claims for lost wages, holiday pay and other entitlements - beginning with the four drivers from their ruling.
"Anyone who has driven for Uber - even if they no longer do so now - is encouraged to enquire with the union," Ms Rosentreter said.
