Uber’s UK drivers will be paid after the Supreme Court ruling

03/17/2021 Business



The company said on Tuesday that as “workers” – a unique classification for employment law in the UK that lacks “employee” – drivers are entitled to a minimum wage, vacation time and a pension. Uber has not implemented the changes on its Uber Eat Food Delivery workers, only Rideshell drivers.
Uber (UBER) That said, the minimum wage will be based on the time spent after accepting travel and spending – a definition that could be the subject of scrutiny. The court ruled last month that drivers have been working since the time Uber’s application was launched, only when passengers are being transported, according to the company’s argument.

The court ruled last month that the group of Uber drivers who bring the case to the employment tribunal are not independent contractors because their activities were “very strictly defined and controlled by Uber.” The judge cited the company’s control over fares and how it determines the terms of the contract on which drivers provide their services. The lawsuit against Uber was first filed by Yasin Aslam and James Farrar in 2016 when both men were driving for Uber.

The decision is a significant defeat for Uber in the United Kingdom, where it is under pressure from labor activists and transport regulators. Uber has defended the controversial business model of treating its workers as independent contractors, while more recently, introducing new benefits as a new intermediary.

“Following last month’s UK Supreme Court ruling, we could have continued to argue in court about drivers’ rights to any of these defenses. Instead, we have decided to turn the page,” Uber CEO Dara Khosroshahi wrote in an op-ed published on Tuesday. Evening discusses standard changes. “We are calling for legal framework updates in both the US and the EU, which would make this type of operation so attractive in the first place that would guarantee benefits and protection for independent workers without compromising flexibility.”
The change in the UK’s business model follows a decisive victory in its home state of California, where voters passed a ballot in November exempting Uber and other Jig Economy companies from state law to re-classify their drivers and delivery people. Employees rather than independent contractors.

As part of the ballot measurement, Uber continues to treat its drivers as independent contractors with the exception of some new benefits, including waiting for a piece with a minimum earnings guarantee based on “busy time” while the driver is completing a ride or delivery request. Jig companies have made it known that they plan to enforce similar laws in other states as well as enforce federal laws in the United States to strengthen their approach.

CNN Business’ Scott McLean and Mick Craver

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