Uber and an inaccessible arbitration clause

In Uber Technologies Inc. v. Heller, 2020 SCC 16, the Supreme Court refused to enforce the arbitration clause at issue. The majority applied unconscionability, considering inequality of bargaining power and an improvident bargain involving substantial upfront arbitration costs.

Mr. Heller provided food delivery services in Toronto through Uber's platform. The standard-form agreement directed disputes to mediation and arbitration in the Netherlands, with substantial upfront fees before the merits could be determined. The majority considered the unequal bargaining position and the practical burden of that process. The decision addressed whether the clause could prevent the action from proceeding in court; it did not finally decide the underlying employment-status dispute that prompted the proposed class proceeding.

The Court did not decide in that appeal that every Uber driver was an employee, and it did not invalidate all arbitration agreements. The practical lesson is to assess the actual dispute-resolution term, how it was agreed, and whether the legal test for avoiding it is met. Preserve the contract version that applied when the relationship began and relevant information about the procedure and costs. An arbitration clause can affect where a claim may proceed, so assess it before choosing a court or tribunal.

When a contract directs a dispute away from court, preserve the applicable version and obtain the procedure, location, fees, and other relevant terms. Identify the actual barrier alleged and the evidence supporting it. A costly or inconvenient process does not automatically make every arbitration clause invalid, and the governing legislation matters. Do not choose a forum without reviewing the term, especially if a filing deadline is approaching. An appropriate professional can assess enforceability, procedural options, and whether the issue requires lawyer involvement before resources are spent in the wrong process.

Sources

• Uber Technologies Inc v Heller 2020 SCC 16
• Law Society of Ontario By Law 4 permitted legal services

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General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 15 October 2026: check the current law, forms and dates before you act.

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This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.