AMSTERDAM—Uber drivers are employees, not contractors, and so entitled to greater workers’ rights under local labor laws, a Dutch court ruled on Monday, handing a setback to the U.S. company’s European business model.
The Amsterdam District Court sided with the Federation of Dutch Trade Unions (FNV), which had argued that Uber’s roughly 4,000 drivers in the capital are employees of a taxi company and should be granted benefits in line with the taxi sector.