Canada's highest court opened the door to a proposed $400-million class-action lawsuit against Uber today after it sided with a driver in a case over whether workers can settle disputes with the ride-hailing company through a costly, foreign arbitration process or through Ontario courts.

In an eight to one decision, the Supreme Court of Canada ruled that drivers can have labour issues resolved through Ontario courts, opening up the possibility of Uber drivers being seen as employees within the meaning of Ontario's Employment Standards Act.

Uber had challenged an Ontario Court of Appeal decision that found the company's contract clause, which relies on a costly arbitration process in the Netherlands to settle disputes, was "unconscionable" and "unenforceable."

The lower court ruling came after David Heller, a driver for UberEATS, attempted to launch a class-action lawsuit in 2017 to force the company to recognize its drivers as employees rather than independent contractors.

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