Uber has been ordered to pay lost wages to a South Australian driver who was booted off the platform after an unproven allegation of threatening behaviour.

In what the Australian Council of Trade Unions has dubbed a "landmark" ruling, the Fair Work Commission has found rideshare company Uber unfairly deactivated Adelaide driver Mohammad Shareef Hotak's account and was required to repay him lost wages.

The Fair Work Commission's ruling states that on March 24, Mr Hotak was driving for Uber when he picked up a rider and two passengers on Adelaide's party strip, Hindley Street.

The rider submitted a report to Uber that Mr Hotak had threatened the passengers with a baseball bat, which Mr Hotak denied.

Mr Hotak said he asked the passengers to stop using drugs in his vehicle and exit the car

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