Taxi firm Uber, which operates in Portsmouth, has lost an appeal against a ruling that means its drivers must be classed as full-time workers rather than self-employed.
Last year a London employment tribunal said drivers working for Uber would be entitled to holiday pay, paid rest breaks and the national minimum wage.
The company appealed against the decision, arguing that its drivers were self employed and were not obligated to use the app.
The San Francisco-based company manages about 40,000 drivers across England and Wales.
It has claimed about 80 per cent of its drivers would rather be classed as self-employed.
Uber was founded in 2009, and invites customers to book journeys using its app.
Drivers can use their own cars although they can rent a car to drive with Uber.