The company he said Tuesday
that, as “workers”, an exclusive classification of labor law in the UK that does not reach “employees”, drivers will be entitled to the minimum wage, holiday time and a pension. Uber did not apply the changes to its Uber Eats food delivery workers, only to drivers.
he said the minimum wage will be based on time spent after a trip is accepted and after expenses, a definition that could be examined. The court ruled last month that drivers are working from the moment they activate the Uber app, rather than carrying passengers just as the company has argued.
Last month, the court ruled that a group of Uber drivers who filed a case in a labor court were not independent contractors because their activities were “highly defined and controlled by Uber.” The judge cited the company’s control over fares and how it dictates the contractual conditions under which drivers perform their services. The lawsuit against Uber was first filed by Yaseen Aslam and James Farrar in 2016, when the two men were driving toward Uber.
The decision was a major defeat for Uber in the UK, where it has been pressured by labor activists and transport regulators. Uber has championed its controversial business model of treating its workers as independent contractors, while more recently it has introduced the addition of new benefits as a kind of midpoint.
“Following the UK Supreme Court ruling last month, we could have continued to discuss drivers’ rights over any of these protections in court. Instead, we have decided to turn the page,” the CEO wrote. Uber, Dara Khosrowshahi, in an opinion published on Tuesday by the Standard in the evening
discussing the changes. “We have been calling for updates to the legal frameworks in both the US and the EU that guarantee benefits and protection to the self-employed without removing the flexibility that makes this type of work so appealing to them.”
The change to his British business model follows a decisive victory in his home state of California, where voters passed a ballot
in November, Uber and other economy concert companies were exempted from a state law that would have forced them to reclassify their drivers and delivery people as employees instead of independent contractors.
As part of the vote, Uber continues to treat its drivers as independent contractors with some new benefit concessions, including a minimum profit guarantee based on “contracted time” when a driver fulfills a delivery or delivery request. but not the time they spend waiting for a concert. Uber and other concert companies have said they plan to push for similar laws in other states, as well as follow federal laws in the United States to consolidate their approach.