Uber will make their 70,000 UK drivers ‘workers’ from TODAY

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Uber will make their 70,000 UK drivers ‘workers’ from TODAY giving them holiday pay and minimum wage after losing Supreme Court battle

  • More than 70,000 drivers were last month ruled by judges to be employees 
  • It puts drivers in line for benefits which are set to take effect from Wednesday 
  • Trade unions bosses said ‘Uber had to be dragged kicking and screaming’ 

By Jack Elsom For Mailonline

Published: | Updated:


Uber drivers in Britain will receive a minimum wage, holiday pay and pensions after the ride-hailing app lost a landmark Supreme Court case.

More than 70,000 drivers were last month ruled by judges to be employees of the company under UK law.

The legal case puts the drivers in line for benefits which are set to take effect today.

Business Secretary Kwasi Kwarteng said the ruling that Uber drivers in the UK should be guaranteed minimum wage, holiday pay and pensions was to be ‘welcomed’.

And Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, described it as ‘an important day’ for drivers in the UK. 

More than 70,000 drivers were last month ruled by judges to be employees of the company under UK law

Landmark ruling that could provoke seismic shift to gig economy

The gig economy is so-called because people only get paid for the work they do – like delivering some food or taking a passenger on a car journey.

Often it is the hallmark of a business that thrives on mobile phone ordering capabilities with demand sparked by purchases from a handset. 

Those in favour of it say it offers flexibility in working hours and a chance to do lots of different jobs.

But there have been serious concerns about the system being abused and people essentially working full-time, with no workplace rights or protection.

This ruling lays down in law Uber drivers are entitled to basic employment rights, including holiday pay and are not independent contractors.

It could pave the way for people doing similar jobs like couriers or delivery drivers to get the same rights.

Gig economy companies include the likes of Deliveroo, who have 15,000 riders, as well as Addison Lee who have 4,000 drivers in London alone.  

Speaking to Sky News, Cabinet minister Kwasi Kwarteng said today: ‘I’ve always said that the new phase of our economy should be about protecting workers’ rights, driving higher standards and driving new technologies.

‘And I think that the Government’s record on things like the national living wage that we introduced has been very good and we want to see a well paid workforce with strong worker protections, driving innovation and economic progress and I think that is something we can achieve.’

Uber manager Jamie Heywood added: ‘Uber drivers will receive an earnings guarantee, holiday pay and a pension, and will retain the flexibility they currently value.

‘Uber is just one part of a larger private-hire industry, so we hope that all other operators will join us in improving the quality of work for these important workers who are an essential part of our everyday lives.’ 

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

Drivers said they were workers whereas Uber operating companies said drivers were contractors, not workers.

The Supreme Court ruling defined Uber drivers as workers, prompting lawyers to say it meant they would be entitled to workers’ rights such as holiday pay and compensation for lost pay.

Uber, which was launched in the UK in 2012, said its drivers will now earn at least the National Living Wage.

On average, its drivers earn £17 per hour in London and £14 in the rest of the UK.

All drivers will be receive holiday time based on 12.07% of their earnings, which will be paid out on a fortnightly basis.

Just Eat boss slams gig economy as it expands its own workers’ rights

Jitse Groen Chief Executive of Just Eat Takeaway.com slated the gig economy in an open letter on the day enhanced workers’ rights jobs were expanded.

He said: ‘The gig economy comes at the expense of society and workers themselves.

‘No taxes and social security premiums are paid, and couriers are not properly insured.

‘The latter is especially concerning, as being a courier carries more risk than having a desk job.

‘The pandemic has made the situation more hazardous, given the increased risk of illness.’ 

They will be automatically enrolled in a pension scheme. The drivers have been told of their new rights.

Uber operating companies had appealed to the Supreme Court after losing three earlier rounds of the legal fight.

Employment tribunals and Court of Appeal judges had ruled against Uber – and Supreme Court judges unanimously dismissed Uber’s appeal. 

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.’

He added: ‘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.’

TUC general secretary Frances O’Grady said it would ‘check the small print of this offer’, which it feels is ‘a big step in the right direction’ from Uber.

She said that gig economy workers deserve to be treated with ‘dignity at work, and to be given the same basic rights as everybody else’.

‘I can finally go on holiday without worrying how to pay for it’: The victorious Uber drivers who brought battle against bosses  

Mark Cairns, an Uber driver in London for five years, said in a statement: ‘It’s been a long time coming but I’m delighted that we’ve finally got the victory we deserve.

‘Being an Uber driver can be stressful. They can ban you from driving for them at the drop of a hat and there’s no appeal process.

‘At the very least, we should have the same rights as any other workers and I’m very glad I’m part of the claim.’

James Farrar (above) said: ‘This ruling will fundamentally re-order the gig economy and bring an end to rife exploitation of workers by means of algorithmic and contract trickery. Uber drivers are cruelly sold a false dream of endless flexibility and entrepreneurial freedom.

‘The reality has been illegally low pay, dangerously long hours and intense digital surveillance. I am delighted that workers at last have some remedy as a result of this ruling, but the Government must urgently strengthen the law so that gig workers may also have access to sick pay and protection from unfair dismissal.’

Uber driver Conrad Delphine said he would now be able to have a holiday after years of working for the company with no holiday or sick pay.

He said: ‘I am very pleased. It means I can go on holiday without having to worry about how to pay for it. Things have been worse because of coronavirus. If we catch the virus we should be entitled to sick pay. It’s about time we had some decent pay and conditions.’

Yaseen Aslam (above), another lead claimant in the case, said: ‘I am overjoyed and greatly relieved by this decision which will bring relief to so many workers in the gig economy who so desperately need it. During the six years of these proceedings, we have watched the Government commission and then shelve a review of the gig economy yet do nothing to help us.

‘I hope in future the Government will choose to carry out its duty to enforce the law and protect the most vulnerable from exploitation.’