Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Uber gives 70,000 UK drivers worker benefits - but Uber Eats couriers left out

Uber gives 70,000 UK drivers worker benefits - but Uber Eats couriers left out

Analysts think the change could spread to other parts of the gig economy, where millions of people work on a job-by-job basis.

Uber has announced it will give basic employment protections to its UK private hire drivers after losing a Supreme Court battle - but Uber Eats delivery workers are not included.

The ride-hailing app's decision means 70,000 drivers have access to holiday pay and a pension scheme, as well as entitlement to be paid at least the national living wage.

Uber will also be contacting drivers in coming days with "settlement offers" to make up for shortfalls in past pay, a senior executive told Sky News.

Uber has about 70,000 UK drivers


It follows a Supreme Court ruling last month in a case dating back to 2016 that drivers should be classed as workers rather than - as Uber had argued - self-employed contractors.

Uber said the new conditions, announced in the wake of that ruling, apply from today.

But there is disquiet over the fact that the drivers will only be paid from the moment they accept a trip request.

That was despite the recent court judgment upholding a previous tribunal ruling that their wages should cover "any period when the driver was logged into the Uber app".

Jamie Heywood, Uber's regional general manager for Northern and Eastern Europe, told Sky News that the company had "studied the Supreme Court's decision very hard" and that its practice was the only way to give drivers "both the protection and the flexibility that they want".

He said paying drivers from when they logged on would prevent them from having the freedom to work for other operators.

Business secretary Kwasi Kwarteng welcomed the announcement


Mr Heywood also brushed off the possibility of making similar upgrades to its conditions for Uber Eats couriers, saying the Supreme Court ruling was specific to the private hire vehicle industry.

He revealed that it would be contacting its cab drivers with "settlement offers" over past work, but would not go into further detail.

Mr Heywood also said he would not reveal how much the changes to driver conditions would cost the company.

Uber's announcement will mean it applies the minimum wage rate, currently £8.72 per hour for those aged 25 and over, rising to £8.91 per hour for everyone aged 23 and over from April.

Holiday pay will be paid fortnightly and based on 12.07% of the worker's earnings, while the automatic enrolment into a pension plan will include employer contributions.

Uber says its drivers have already had free insurance to cover sickness, injury, and parental leave since 2018.

The company said the court ruling had "provided a clearer path forward as to a model that gives drivers the rights of worker status while continuing to let them work flexibly".

US-based Uber said its drivers in London earn an average of £17 an hour (£14 in the rest of the UK) and that the minimum wage entitlement would be "a floor and not a ceiling".

The company's shares fell more than 4% in early Wednesday's trading in New York in the wake of the decision as investors mulled the implications for Uber's operating model.

Business Secretary Kwasi Kwarteng said the move was "absolutely to be welcomed".

He told Sky News: "I've always said the new phase of our economy should be about protecting workers' rights, driving higher standards, driving new technologies.

"I think the government's record on things like the national living wage, that we introduced, has been very good.

"We want to see a well-paid workforce, with strong worker protections, driving innovation and economic progress - and I think that's something we can achieve."

Frances O'Grady, general secretary at the Trades Union Congress, said: "Gig economy workers deserve to be treated with dignity at work, and to be given the same basic rights as everybody else.

"We will check the small print of this offer. But this appears to be a big step in the right direction from Uber.

"Now the company must recognise trade unions. The TUC stands ready to host talks with Uber and private hire unions to begin that process."

Frances O'Grady, general secretary of TUC


It's not the first time Uber has been in court over the status of its drivers.

Last year, the top court in France recognised the right of an Uber driver to be considered an employee.

The European Union is considering new rules to protect gig economy workers.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said Uber's reclassification of its drivers would "reverberate through the entire gig economy".

"It has become clear that the Supreme court's decision last month steered Uber into a dead end in its fight to keep those behind the wheel on self-employed contracts.

"It is likely that other operators will now be forced to reassess the employment status of the drivers they have relied on to develop lucrative businesses.

"The company has reversed on its previous position of claiming that the ruling only applied to a limited number of drivers who had brought the case.

"Throwing in the towel is likely to come at a significant cost to the company."

Uber's share price fell by just under 1% in after-hours trading in New York, as investors digested the implications of the decision.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
×