Daily News

View All News

Uber changes status of 70,000 drivers in UK, but they won’t be employees

March 17, 2021

Starting today, Uber Technologies Inc. (NYSE: UBER) said 70,000 drivers in the UK will be treated as “workers,” earning at least the UK’s National Living Wage and other benefits.

Uber reported the “worker” classification is unique to UK labor law. Workers are not employees but are entitled to the minimum wage, holiday pay and a pension.

“This is an important day for drivers in the UK,” said Jamie Heywood, regional general manager for Northern and Eastern Europe at Uber.

“Uber drivers will receive an earnings guarantee, holiday pay and a pension, and will retain the flexibility they currently value,” Heywood said. “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.”

The move follows several court battles in Europe, SIA’s Europe office reported.

Uber said an estimated 99% of UK drivers already earned more than the UK’s minimum wage. On average, drivers in London earned £17 per hour of engaged time and drivers elsewhere in the country earned £14 per hour of engaged time.

The company also noted UK drivers will be paid holiday time based on 12.07% of their earnings paid out every two weeks. Drivers will also be automatically enrolled into a pension plan with contributions from Uber; these contributions will represent approximately 3% of a driver’s earnings.