Uber Changes in Employment Law

British supreme court ruled that Uber drivers are entitled to ‘Workers rights’ in February. Subsequently, Uber in March took a breakthrough decision to obey the courts final verdict. The milestone decision was taken in the favour of the Uber drivers, who were deprived of their basic worker’s rights despite working under the banner of Uber. Today, we will discuss thoroughly the changes Uber has made to its policy and how it impacts its employees(former and current employees).

How It All Started?

First of all, there are three statuses of employment in the United Kingdom: Employees, worker, self-employed. Each of the categories is entitled to different rights and responsibilities. Employees and workers have the right to public holidays, national minimum wage, and rest breaks; however, the self-employed do not have any of such protections. Until Uber has made the decision, the drivers were regarded as self-employed. It means that they have despaired from the basic worker’s rights. In the supreme court, Uber claimed that Uber drivers are not tied to the company with a contract that is required to get the title of a worker. The driver, on the other hand, argued that they had and therefore are workers. In the final ruling, the Supreme court declared Uber drivers as workers. Consequently, Uber also announced its decision to accept the court’s verdict. It agreed to address Uber driver claims and compensate them.

So, most of the Uber drivers are in a rush to hire lawyers for making the claims and getting their deserved compensation.

What Does It Mean For Employees? 

Uber has granted statutory rights to its workers who were initially declared as self-employed. While employees have the most protection in the United Kingdom, the workers have basic rights as:

  1. A maximum 48-hour average working per year.
  2. Entitled to a national minimum wage.
  3. Rest break
  4. Six weeks of paid leave annually.
Uber’s Official Announcement: 

Uber made its official announcement on March 17, 2021. It announced that it will guarantee its 70,000 UK drivers a monthly wage, holiday pay, and pension. It means that they will be given the worker rights that the UK law affirms. According to UK law, workers above 25 have to get a minimum wage of £8.72 per hour with holiday pay and a pension. According to this, all current workers of Uber will get all the workers’ rights; It, according to Dara Khosrowshahi the Uber’s chief executive, will improve the standard of work for drivers in the UK.

Claim For Compensation:

According to the changes that Uber has currently made, it has agreed to the fact that it kept its worker deprived of their rights. In this perspective, Uber owes money to its current and former drivers. In this regard, Uber will pay all of its drivers who drove for it at any time since January 1, 2015. So, if you have had been affiliated with Uber, during the mentioned period, you can make a claim for compensation.

Can The Claim Impact Your Current Employment?

It is one of the most common questions that many current Uber drivers ask. They are scared if that can put their current status of the worker in danger by claiming compensation for driving in the past. However, there is nothing to get scared of as it is not going to influence your employment. Uber is compensating all of its drivers, and you are not alone.

Bottom Line:

Uber’s decision on granting the status of workers and thus the rights of workers are a milestone. In fact, this decision has also sparked a desire in many gig-workers, who work for companies the way Uber drivers used to do for Uber.