More than 70,000 Uber drivers will now be treated as workers under UK employment law.
The changes come into effect from today (March 17) and mean that drivers will no longer be treated as self-employed workers.
They’ll be given the same rights as ordinary employees, meaning they’ll be entitled to paid holiday and guaranteed to earn at list the National Living Wage.
The company sent an email to its riders and drivers which said: “Drivers are an essential part of our everyday lives and we are proud to be making these changes to how they earn with Uber.”
It comes a month after the Uber firm lost a legal battle in the UK, begun in 2016, over drivers’ status.
Drivers said they were workers whereas Uber’s operating companies said drivers were contractors, not workers.
A ruling by the Supreme Court defined Uber drivers as workers, prompting lawyers to say it meant they would be entitled to workers’ rights such as holiday pay and compensation for lost pay.
Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, described it as “an important day” for drivers in the UK.
He added: "Uber drivers will receive an earnings guarantee, holiday pay and a pension, and will retain the flexibility they currently value.
“Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work for these important workers who are an essential part of our everyday lives.”
However, some are claiming the changes do not go far enough.
What it means for drivers
Uber drivers will now earn at least the National Living Wage for over-25s, no matter the driver’s age, after accepting a trip request and after their expenses.
They will also receive holiday pay based on 12.07% of their earnings, which will be paid out on a fortnightly basis.
Drivers will also be automatically enrolled into a pension scheme.
Former Uber driver James Farrar said minimum wage, holiday pay and pensions were a step in the right direction but drivers were still being short-changed.
Mr Farrar, who along with Yaseen Aslam originally brought claims against the firm, told the PA news agency that drivers should accrue minimum wage and holiday pay from when they log in not just from when a trip is accepted.
He claimed that this means 'about 40-50% of your working time is still not being paid or protected'.
Drivers will still be able to choose when and where they go online to accept fares, and will still be able to take advantage of the company’s free insurance for sickness or injury.
What it means for passengers
The change in regulations shouldn’t have much of an impact on how passengers use, or are charged to use taxis booked in the Uber app.
The company has insisted that fares will not rise following the change.
Drivers are still able to work flexibly so there should be no difference to the availability of Uber cars, either.
What the reaction has been
Law firm Leigh Day represents more than 4,000 Uber drivers in the workers’ rights claims.
A spokesperson from the organisation said: “This is an important decision, not just for the Uber drivers who have been fighting for workers’ rights for over five years, but for the whole of the gig economy.”
Frances O’Grady, general secretary of the TUC union, said: “Now we need to take it to the next level.
“We will be pushing hard for Uber and other platform companies to recognise unions and give staff a proper voice at work.
“Gig workers deserve the same basic rights as everybody else.
“Unions won’t rest until pay and conditions have improved across the gig economy.
“And we’ll keep the pressure up on the government to use its long-delayed employment bill to crackdown on insecure work.”
