Essential Legal Considerations For Uber Drivers

If you’re driving for Uber or any other ride service, then it’s important to make sure you understand the legal factors that may impact you. Possessing knowledge of the laws and regulations that surround driving for a ride service can make the journey go a lot smoother. 

In this article, we’ve compiled some of the most essential legal considerations for Uber drivers. That way, you can offer your services to others while being assured you’re working with the law on your side.  

What Are The Requirements For An Uber Driver? 

As an Uber driver, the first thing you need to be aware of is making sure you have met all of Uber’s requirements. Specific requirements for any ride service company can be found on their website, so it’s best to go read them right off the source. In most cases, companies like Uber expect their drivers to: 

• Hold a full drivers licence
• Obtain a background check 
• Have a vehicle that has passed all requirements 

We also recommend reading any terms and conditions that have been set out for drivers by Uber. Ride share companies like Uber also note on their website that along with Uber’s rules, drivers need to adhere to any related regulations of their state or territory. 

Therefore, it’s essential to do your due diligence on any state level requirements for Uber drivers. For instance, some states may demand additional checks and documentation to be submitted. If you’re struggling to get a grasp of what rules you need to follow, then it’s always a good idea to clear things up with a Regulatory Compliance Legal Expert. 

Do I Need An IRD Number As An Uber Driver? 

All Uber drivers in New Zealand operate as independent contractors. Since you’re not directly employed by Uber, you essentially work for yourself. This implies that having an Inland Revenue (IRD) number is likely necessary for tax and registration purposes. If you’ve been driving without one, there’s no need to worry. Applying for an IRD number is a relatively straightforward process that can be completed online.

Once you’ve followed all the necessary steps and provided the required information, you should receive your IRD number via email. Additionally, you might want to consider getting an NZBN. This isn’t a requirement by any means, however it can make things a bit easier and more convenient in the long run. Much like an IRD Number, you can apply for an NZBN online as well.

Do Uber Drivers Need To Register For Taxes? 

When you apply for an IRD number, you’ll also have the opportunity to register for income tax and Goods and Services Tax (GST). It’s crucial to include any earnings from your Uber activities and any associated driving costs when filing your annual tax returns.

Being transparent with your tax obligations is essential to avoid any issues with the Inland Revenue Department. Keep in mind that if your earnings from Uber exceed $60,000 in a year, you’ll also need to pay GST.

Staying aware of your tax responsibilities is key to staying on top of your obligations as you continue to drive for Uber.

Is It Legal To Record Passengers As An Uber Driver? 

Many drivers like to keep dash cams or other recording devices in their cars, for safety purposes. It’s not against Uber’s rules to do so, but they do advise following the privacy regulations of the region you’re in. 

In all instances, you won’t be permitted to publish the material you have recorded while driving Uber without the consent of the other people in the recording. Moreover, it’s important to notify people they are being recorded. You can always do this by adding a clearly visible Disclaimer in your vehicle, so passengers can be aware of their being filmed. 

Specific recording laws differ between regions, so if you have more questions then it’s best to chat to a legal expert about your options when placing a recording device in your Uber vehicle. 

What Are My Worker Rights As An Uber Driver? 

As mentioned earlier, Uber drivers in New Zealand are considered independent contractors. Consequently, Uber isn’t obligated to provide benefits such as sick leave and superannuation payments to drivers as they would for employees. Nevertheless, this doesn’t mean that Uber drivers don’t have rights under New Zealand’s employment laws.

As a driver, you have the right to a safe working environment and to be treated with respect and fairness. If you believe your rights have been violated, we strongly recommend reaching out to Employment New Zealand to gain a better understanding of your options.

Next Steps 

Whether it’s your full time day job or a side hustle, it’s important to factor in some of the main legal considerations that impact all Uber drivers. To summarise what we’ve discussed: 

• Uber driver requirements include a valid driver’s license, passing a background check and having a compliant vehicle
• Adhering to Uber’s regulations as well as region-specific rules is a must
• Additional regional regulations and checks may apply; consulting legal experts can help clarify these.
• Having an IRD number is typically necessary for tax and registration as an independent contractor
• Registering for an IRD number also allows you to apply for income tax and GST
• Consider getting an NZBN, it’s optional but can be very useful
• Recording passengers with dash cams depends on privacy rules- using a disclaimer can help inform passengers about recording
• Seek legal advice for specific recording laws in your region
• Uber drivers are classified as independent contractors, so Employment New Zealand can assist with rights-related concerns

If you would like a consultation on your options moving forward, you can reach us at 0800 002 184 or [email protected] for a free, no-obligations chat.

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