All Uber’s 70,000 British drivers are now entitled to minimum wage and holiday pay. Uber is taking the step because of a recent ruling by the British Supreme Court. The company behind the well-known taxiapp will henceforth treat its drivers as ‘workers’.
According to Uber, this is a unique classification under British Labour Law, which is something between self-employed and employee.
Until now, the company has treated its drivers as self-employed, which means that they have fewer rights under the law. After the judge’s ruling, Uber was more or less forced to make changes. That ruling was seen as a setback for Uber and, according to experts, could jeopardise the business model in the UK, the main European market for Uber.
Uber has been criticized for its self-employment contracts for a long time. The company has already conducted several lawsuits about its business model worldwide, with varying degrees of success. In the U.S. State of California, Uber won last year when the business model with contractors was challenged.