Costa Rican courts have dealt another blow to Uber, ruling that the ride-hailing company must treat drivers as employees rather than independent contractors. In a decision in September, a labor court in San José found an employment link between Uber and a driver who worked from 2018 to 2024. The court ordered Uber to pay more than ₡14 million in back wages, severance, vacation time, bonuses, and other benefits, plus ₡2.8 million in legal fees.
The driver argued his disconnection from the app equaled an unfair firing without proper notice. He pushed for a settlement during the trial, but Uber refused. He also asked for six months of lost income and damages. To secure payment, he and his attorney requested a freeze on Uber’s assets and accounts in case the company tries to dodge the bill.
This follows a similar case last month where an appeals court upheld a ruling against Uber. That involved a driver active from October 2019 to February 2023, cut off without reason. The court pointed to Uber’s control over drivers through app rules, penalties, and trip assignments as proof of an employer-employee setup. Uber now owes that driver around â‚¡10 million for similar claims, with potential asset seizures if unpaid.
These cases highlight how Uber directs drivers’ work, from setting fares and routes to enforcing ratings and behavior standards. Drivers must follow company guidelines or face suspension, showing clear oversight. In Costa Rica, labor laws require employers to cover social security, holidays, and end-of-year bonuses, which Uber had avoided by classifying drivers as partners.
For those relying on Uber here, these rulings could mean changes in service. Drivers might gain better protections, but fares or availability could shift as Uber adjusts. The company has said it follows court orders in the past, though it appealed the latest decision. The higher labor court will review that appeal soon.
Other drivers have started similar claims after these wins. One former driver shared how his sudden app ban left him without work overnight, forcing a switch to another platform. He kept records of trips and earnings, which helped prove his case. Legal experts note that detailed logs strengthen these suits.
Uber marked 10 years in Costa Rica this August, amid ongoing debates about its model. The government has discussed regulations for ride apps, but no major laws have passed yet. Taxi unions and lawmakers have long criticized Uber for undercutting traditional services without matching labor standards.
If you’re driving for Uber or using the app while traveling, watch for updates. These decisions set examples that could spread to other gig jobs in the country.
