UPDATED 23:46 EDT / MARCH 16 2021

POLICY

Following Supreme Court ruling, UK Uber drivers will be classified as workers

Drivers working for Uber Technologies Inc. in the U.K. will now receive all the benefits that full-time workers get, Uber announced today.

The company said that its 70,000 drivers in the U.K. will receive holiday pay, will automatically be enrolled in a pension scheme, and if they are over the age of 25, will be paid at least the minimum wage of 8.72 pounds ($12.07). This is seen as a big win for those employed in the gig economy.

“This follows the recent U.K. Supreme Court ruling, which provides a clearer path forward as to a model that gives drivers the rights of worker status while continuing to let them work flexibly,” Uber said.

The change comes a month after Uber lost a court battle in Britain over the status of its drivers there. The lawsuit started in 2016 when only a handful of drivers took Uber to court over working conditions and their labor rights. Uber fought the decision, but the Supreme Court upheld the ruling that the drivers should be classified as workers, not as independent contractors.

Today in an op-ed for the London Evening Standard, Uber Chief Executive Dara Khosrowshahi wrote that the company is “turning the page on driver rights.” He seemed to embrace the court’s decision, even though Uber has been fighting it for several years.

“This is a significant improvement in the standard of work for U.K. drivers,” he wrote. “But I know many observers won’t pat us on the back for taking this step, which comes after a five-year legal battle. They have a point, though I hope the path that we chose shows our willingness to change.”

The question now is what impact this will have on other companies that are part of the gig economy. People commenting on the case have said the repercussions will be seen across the entire economy, with one union leader telling the BBC, “This is the end of the road for bogus self-employment.”

Khosrowshahi noted that many drivers work for a number of different companies. He added that it “makes no sense” for those drivers to have worker status when driving for one company and not for the next. “I hope our competitors, who are engaged in their own legal battles, will rethink their approach and join us in taking this step,” he said.

Photo: quotecatalog/Flickr

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