Following their recent legal battle in relation to the employment status of Uber drivers, (which concluded that the individuals in question were “workers” and not self-employed), the firm has now confirmed it will provide it’s drivers with certain worker rights. Their 70,000 UK drivers will be guaranteed at least National Living Wage @ £8.72 per hour, holiday pay and pension.
The recent court case conclusion is only applicable to the drivers that brought the case, meaning that Uber is not legally obliged to grant these benefits across its business, however the firm has decided to do so. The new pay rate will form an earnings minimum, not a ceiling, and announcing further details Uber said:
- It will pay at least the National Living Wage for over-25s, irrespective of a driver’s age, after accepting a trip request and after expenses
- All drivers will be paid holiday time based on 12.07% of their earnings, paid out on a fortnightly basis
- Drivers will automatically be enrolled into a pension plan with contributions from Uber alongside driver contributions, setting drivers up over the long term
- It will continue free insurance in case of sickness or injury as well as parental payments, which have been in place for all drivers since 2018
- All drivers will retain the freedom to choose if, when and where they drive
The changes do not apply to couriers in its food delivery business, Uber Eats, who remain self-employed. It will be interesting to see how other gig economy businesses react to the news, and whether they will also take similar action.