Uber to classify UK drivers as workers after court appeal dismissed
Uber from Wednesday will reclassify its drivers as “workers” in the UK, the company said, entitling them to certain benefits under UK labor law. The new designation comes after Uber lost its appeal of the UK Supreme Court ruling last month that their drivers should be classified as workers. Since 2016, Uber has been waging legal and regulatory battles in the UK over whether drivers are “self-employed” or “workers” under UK labor law.
Under this designation, Uber will pay its more than 70,000 drivers the UK minimum wage, which stands at £ 8.72, and offer them pensions and paid time off. The UK accounts for more than 6% of Uber’s rideshare bookings, according to an Uber filing with the US Securities and Exchange Commission, making it one of its largest markets.
The designation of the worker also follows the adoption of California’s 2020 ballot measure, which similarly guaranteed certain benefits to drivers. Under this measure, carpooling service providers must provide drivers with a minimum wage and subsidies for health care based on the number of hours worked by a driver, but will still be allowed to classify drivers as sub- contractors instead of full-time employees.
While the new requirements led to higher prices for Uber’s ridesharing services in the state, the voting measure was “the right outcome for Uber runners and drivers,” said chief financial officer Nelson Chai in Uber. most recent income call. “The price increases are manageable compared to the over 100% increase associated with traditional employment, [which] would have seen us leave most California markets – and not just us, but our other competitors as well. “