Uber drivers in the UK receive paid holidays and pensions after Supreme Court decision

Uber drivers in the UK receive paid holidays and pensions after Supreme Court decision

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The company said on Tuesday that as “workers” – an exclusive classification of UK labor law that falls short of “employee” – drivers will be entitled to minimum wages, holidays and pensions. Uber did not apply the changes to Uber Eats food delivery employees, only to tour drivers.
Uber (UBER) he said that the minimum wage will be based on the engagement time after acceptance of the trip and after expenses – a definition that could be analyzed. The court ruled last month that drivers have been working since the moment they activate the Uber app, and not just in passenger transport, as the company argued.

Last month, the court ruled that a group of Uber drivers who took the case to an employment tribunal were not hired independently because their activities were “rigidly defined and controlled by Uber”. The judge cited the company’s control over fares and how it dictates the contractual terms under which drivers perform their services. The Uber lawsuit was first filed by Yaseen Aslam and James Farrar in 2016, when the two men were driving to Uber.

The decision marked a significant defeat for Uber in the UK, where it was pressured by labor activists and transportation regulators. Uber has defended its controversial business model of treating its workers as independent contractors, while, more recently, it presents the addition of new benefits as a kind of middle ground.

“Following the UK Supreme Court decision last month, we could have continued to dispute drivers’ rights to any of these protections in court. Instead, we decided to turn the page,” wrote Uber CEO Dara Khosrowshahi, in an opinion article published on Tuesday by the Evening Standard discussing the changes. “We have been asking for updates to legal frameworks, both in the US and in the EU, that guarantee benefits and protection for self-employed workers without removing the flexibility that makes this type of work so attractive to them in the first place.”
The change in its business model in the UK follows a decisive victory in its home state of California, where voters passed an electoral measure in November exempting Uber and other giant economy companies from a state law that would require them to reclassify their drivers and deliverers as employees rather than independent contractors.

As part of the electoral measure, Uber continues to treat its drivers as independent contractors with some new benefit concessions, including a guarantee of minimum earnings based on “commitment time” when a driver is fulfilling a ride or delivery request, but not the time they spend waiting for a show. Uber and other show companies have announced that they plan to promote similar laws in other states, as well as seek federal legislation in the United States to solidify their approach.

Scott McLean and Mick Krever of CNN Business

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