Taxi-hailing app firm Uber has lost an appeal against a ruling that its drivers should be treated as workers rather than self-employed.
Last year a tribunal ruled drivers James Farrar and Yaseen Aslam were Uber staff and entitled to holiday pay, paid rest breaks and the minimum wage.
Uber appealed, arguing its drivers were self employed and were under no obligation to use its booking app.
The firm said it would appeal against this latest ruling, too.
Uber which has up to 50,000 drivers using its app in the UK, claims 80% of them would rather be classed as self employed.
Uber said there were two further possible stages in the appeal process – the Court of Appeal and the Supreme Court.