Two drivers won a case last year after arguing they were workers and entitled to standard workers' rights
Taxi firm Uber has lost an appeal in the UK against a landmark ruling on the employment rights of its drivers.
Two drivers, James Farrar and Yaseen Aslam, won a case against the ride-hailing app last year after arguing they were workers and entitled to the minimum wage, sick pay, paid holiday and breaks.
During its failed attempt to overturn the decision at the Employment Appeal Tribunal in London, Uber claimed the ruling could deprive drivers of the "personal flexibility they value".
The taxi firm, which is battling London's transport regulators Transport for London (TfL) over its licence to operate in the capital, said it would appeal against Friday's judgement.
In a statement, it said: "Almost all taxi and private hire drivers have been self-employed for decades, long before our app existed.
"The main reason why drivers use Uber is because they value the freedom to choose if, when and where they drive and so we intend to appeal."
Mr Farrar, 49, said he was "really disappointed" over Uber's intention to appeal, saying it had "an army of lawyers paid for by exploiting labour".
The driver added: "We can't give up because the case law is so important now that if we give up and give this victory to Uber, then the battle will be so much harder for everybody else that comes after us - not just Uber drivers, but people right across the economy.
"Because if Uber gets away with this, then everywhere you turn in Britain, industrial Britain, you'll have people under this sort of fake self-employed conditions, carrying all the risk of the business and have no worker rights."
Last month, Uber filed an appeal against a decision by Transport for London to deny it a licence to operate in the city.
Regulators said the taxi-hailing app had demonstrated "a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications".
Uber employs 40,000 drivers in the British capital and can continue to operate until the appeal process is complete.