After losing a four-year legal battle in February 2021, the Supreme Court has ruled than Uber drivers are ‘workers’ rather than self-employed.
Following this ruling, Uber has confirmed it will pay its drivers a guaranteed minimum wage, offer holiday pay, and provide pensions.
Uber employs 70,000 drivers in the UK. Each will now be entitled to earn at least the National Living Wage, which rises to £8.91 per hour in April 2021.
Uber states that its new pay structure will form an earning floor, not a ceiling, and will come on top of free insurance to cover sickness, injury and maternity, and paternity payments which have been in place for all drivers since 2018.
All drivers will be entitled to paid holiday based on 12.07% of their earnings, which will be paid on a fortnightly basis. They will also be enrolled into a pension plan automatically, with contributions from Uber.
The company added that all drivers will retain the freedom to choose if, when and where they drive too.
However, the changes do not apply to drivers who work for Uber Eats, Uber’s food delivery business.
GMB, the union for Uber drivers, says the company has finally done the right thing. Mick Rix, GMB national officer, said:
“Uber had to be dragged kicking and screaming to do the right thing, but finally they’ve agreed to follow the ruling of the courts and treat their drivers as workers.
“It’s a shame it took GMB winning four court battles to make them see sense, but we got there in the end and ultimately that’s a big win for our members.
“GMB has consistently said we are willing to speak face to face to Uber about its treatment of drivers, our door remains open.
“Other gig economy companies should take note - this is the end of the road for bogus self-employment”.