Ride-hailing platform Uber will treat drivers in the UK as workers like its global workforce, that will give them benefits like minimum guaranteed pay, holiday pay, pension plans and others.
The move came after The UK Supreme Court ruled last month that Uber drivers should be treated as workers and not self-employed.
The company said on Tuesday that all drivers in the UK will be paid holiday time based on 12.07 per cent of their earnings, which will be paid out every two weeks, TechCrunch reported.
“Drivers will also be paid at least the minimum wage (called the National Living Wage) after accepting a trip request and after expenses,” Uber said in a statement.
Eligible drivers in the UK will automatically be enrolled into a pension plan with contributions from Uber.
These contributions will represent approximately 3 per cent of a driver’s earnings.
“While we welcome Uber’s decision to finally commit to paying minimum wage, holiday pay and pensions we observe that they have arrived to the table with this offer a day late and a dollar short, literally,” said a statement from the App Drivers & Couriers Union.
The Supreme Court ruled that drivers are to be recognized as workers with entitlements to the minimum wage and holiday pay to accrue on working time from log on to log off trip time.
“Uber is committing only to these entitlements to accrue from time of trip acceptance to drop off. This means that Uber drivers will be still short-changed to the tune of 40-50 per cent,” the union lamented.