Your commercial news round-up: Uber, Russia, Next, TM Lewin

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Sun’s out, shades out! The LCN team enjoyed a lovely stroll down Blackfriars Bridge this afternoon – modelling our trendy sunnies, baking in the warmth and feeling like we were in Spain – (let us dream!).

Don’t let the sun distract you from wearing your sunscreen or reading this week’s commercial news round-up though – let’s get stuck in!

• In the transportation industry, Uber could face legal action over claims it failed to offer Sharia-compliant pensions to Muslim workers. These complaints could escalate into a massive lawsuit for Uber, whose workers are predominately Muslim. Many Muslim workers cannot keep their current pensions with the employer because it doesn’t offer a Sharia-compliant scheme.

In 2021, Uber launched a pension scheme for its drivers that were deemed workers, rather than independent contractors – which was a legal breakthrough. However, the transport app is under fire for its scheme because it discriminates on the grounds of religion which breaches the Equality Act (2010). Yaseen Aslam, president of the App Drivers & Couriers Union said: “the exclusion of a Sharia option effectively makes the pension scheme inaccessible for the vast majority of the workforce”.

• Last month we reported that many retail stores had stopped trading in Russia, with banks and firms ceasing all existing and new business in or associated with the country. This month Latham & Watkins followed suit as the firm dropped Russia’s state VTB Bank as a client. The Russian bank is currently involved in a lawsuit for allegedly funding the militia group that shot down Malaysia Airline Flight 17. Similarly, White & Case LLP withdrew from representing Russia in a £43 billion lawsuit and even closed its Moscow office last month. Since Russia’s invasion of Ukraine, a string of law firms have either exited Russia, dropped state-owned clients or cut ties with Russian clients.
   
• In retail news, Next has partnered with investment firms to secure purchase of baby good retailer JoJo Maman Bébé. The fashion retailer wishes to keep JoJo Maman Bébé separate from the rest of its business to retain its “identity, values and talent”. According to the Retail Gazette, the “high street giant has acquired 44% of the firm’s shares, with the rest purchased by investment firms linked to hedge fund Davidson Kempner”. Next’s chief executive Lord Wolfson commented, “We are excited to see what can be achieved through the combination of JoJo’s exceptional product with Next’s infrastructure and Davidson Kempner as our investment partner.”
   
• Last month LCN reported TM Lewin’s collapse for the second time in four years following the move towards hybrid working post-pandemic. This week, the menswear retailer lost a legal battle against former employees who walked away with £439,000 in damages. The employment tribunal awarded damages to more than 100 of its former staff because the retailer was required to consult its employees before firing them. Employment law, under redundancy rights, enforces that employers must carry out a 45-day long collective consultation period in circumstances that involve sacking more than 100 employees. This is to provide adequate warning of the proposed changes. A similar issue was faced by P&O Ferries as it sacked 800 of its staff last month.

Interested in hearing more about the P&O Ferries case? Register for our webinar with TLT LLP on Wednesday 11 May: ‘P&O Ferries case study - why employment law matters’.

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