The employment status of Deliveroo riders is set to be considered by the High Court in the latest test of gig economy worker rights.

The Independent Workers Union of Great Britain (IWGB) was today given the green light for a full judicial review of a ruling by the Government's Central Arbitration Committee (CAC), which had said riders could not be classified as “workers”.

But the union’s quest to overturn last November’s CAC decision was dealt a blow after the High Court dismissed a request from the IWGB to cap legal costs at £100,000.

The IWGB is funding its legal challenge through a crowdfunding campaign. It has raised £23,000 so far and the decision not to cap costs could require the union to ramp up its fundraising to fund its legal bid.

The CAC had concluded because riders are able to either pass on a delivery service to a substitute, or to abandon a job, they were not obliged to provide a "personal service". Therefore, riders did not meet the test of being “workers”.

The union said that the riders are "denied basic employment rights" including a guaranteed minimum wage, holiday pay and collective bargaining rights.