Uber to pay drivers a minimum wage, holiday pay and pensions

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Daily US Times: Ride sharing giant Uber says it will give its 70,000 UK drivers a guaranteed pensions, minimum wage and holiday pay.

The company said drivers would earn at least the UK’s National Living Wage, paid to the over-25s, of £8.72 an hour.

It comes one month after Uber lost a legal battle in the UK, begun in 2016, over drivers’ status.

The US firm told the BBC that it did not expect the change in drivers’ conditions to mean higher fares.

Employment experts and union leaders said Uber’s move would have far reaching consequences for the gig economy. Bates Wells lawyer Rachel Mathieson, who represented Uber drivers fighting for worker rights, called it “a very significant milestone”.

Uber had argued in last month’s Supreme Court hearing that it was a third-party booking agent, and its drivers were self employed.

But the court ruled its drivers were workers, a category that means they are entitled to pensions, legal and holiday rights.

Uber is being challenged by its drivers in multiple countries over whether they should be classed as self-employed or workers.

The company said the changes to its UK drivers’ pay would come in almost instantly, from Wednesday, and form an earnings floor, not an earnings ceiling.

The ride hailing giant said the new rates would come on top of free insurance to cover injury, sickness, and maternity and paternity payments which have been in place for all drivers since 2018.

Uber says it will pay at least the minimum wage for over-25s, after accepting a trip request and after expenses. All drivers will be paid holiday time based on 12.07% of their earnings, paid out on a fortnightly basis

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