Uber (UBER.N) said it was rejecting a verdict from a Brazilian labor court that had ordered the ride-hailing company to pay 1 billion reais ($205 million) in fines for irregular working relations with the drivers who use its app.
In addition, the punishment, which a state court in Sao Paulo handed down, required Uber to recognize its employment relationships with all of its app’s drivers and register their professional work cards, with a penalty of 10,000 reais for each unregistered worker if Uber did not comply.
In the case submitted to the Brazilian public prosecutor’s office in November 2021, the defendant corporation was accused of directing how professionals’ operations should be carried out, “which constitutes an employment relationship.”
Uber has stated that it will appeal the ruling and will not implement any of the steps outlined in the sentencing until all of the resources relevant to the situation have been used up.
“There is evident legal uncertainty,” the company stated in a statement, citing legal precedents involving other businesses like delivery services Lalamove, Loggi, and Ifood, as well as taxi app 99. “There is evident legal uncertainty,” the company added.
