Uber will classify some 70,000 UK drivers as workers entitled to labor benefits. The measure takes effect from this Wednesday (17) after the company lost the appeal in the Supreme Court in February this year.
Drivers will still not be considered full-time employees, but will be entitled to vacation and will receive a minimum wage in the driving fare. The benefits are valid for drivers enrolled in the pension plan.
Although the measure is seen as a victory, there are points that deserve caveats. For example, drivers will only receive the minimum wage after accepting the races instead of receiving the hourly rate.
This goes against the decision of the British Supreme Court. The text states that “the time spent working for Uber was not limited [as the company argued] to the periods when they were taking passengers to their destinations, but it did include any period when the driver was connected to the app”.
Previously, the company said drivers would receive at least the British base salary, at around £ 8.72 an hour. With that, she argued that the changes would form a earnings floor, not a earnings ceiling.
Flexibility or benefits
Uber and similar companies argue that classifying drivers too strictly would take away the freedom to work when they want to. So, companies claim that flexibility is as important as the benefits of an “official” job.
In an interview with the Evening Standard, CEO Dara Khosrowshahi said that “it is increasingly clear to us that flexibility alone is not insufficient and should not occur at the expense of social protection.” But the executive adds that he believes that “outdated labor laws basically enforce this compensation”.