In the recent Uber case, Uber has now amended its policies and now accepts its drivers as workers, which will therefore entitle them to holiday pay and a minimum wage. This has been a long-awaited victory for many drivers who, after battling for five years, received a positive decision from the Supreme Court in the case of Uber BV and others v Aslam and others [2021] UKSC 5.
According to Uber’s previous stance, its drivers were partners/self-employed contractors and not workers. This meant that they were not entitled to basic worker rights. The courts made decisions in favour of the drivers, but Uber continued to raise challenges until the highest court in this country dismissed Uber’s appeal.
The Supreme Court agreeing with the Employment Tribunal, Employment Appeal Tribunal and Court of Appeal changed the employment law. As a result, Uber drivers are now workers and therefore entitled to certain benefits. Much of this decision was based on the control Uber exercises over its drivers. The Supreme Court specifically noted that Uber drivers entered a contract to perform services for Uber when they logged into the Uber app. The Supreme Court also noted that Uber had control over setting fares, managing performance via a rating system, and not informing the drivers of the journey’s destination until the passenger was picked up. Naturally, this does not illustrate a great deal of independence on the part of the drivers.
The Supreme Court ruling has benefitted thousands of Uber drivers and their families. Since the judgement, Uber has contacted its customers to share a better way of working with drivers. Uber has confirmed that as of 17 March 2021, its drivers will be paid holiday time which will be automatically enrolled into a pension plan and guaranteed to earn at least the National Living Wage. Drivers are said to receive a payment of 12.07% of their earnings to reflect their right to holiday pay. Automatic pension enrolment is to be supported by contributions from Uber (although the amount id=s unclear ). Uber claims that 99% of its drivers already receive National Living Wage, and therefore the requirement to now pay drivers National Living Wage is ‘a floor, not a ceiling.’
All the above are said to be additions to the benefits which have been made available to the drivers since 2018, including free insurance to cover sickness, injury and maternity and paternity payments. However, it should be noted that this is also during the length of the case particularly at the Court of Appeal stage, and not prior to it.
Disclaimer:
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.
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