Uber under pressure on UK minimum wage in test of gig economy
By Costas Pitas
Reuters
LONDON (Reuters) - Uber drivers in Britain should receive the minimum wage for the whole time they are logged on to the app, two former drivers said on Wednesday after winning a court battle which could reshape the gig economy.
Following a UK Supreme Court defeat last month, the Silicon Valley-based company reclassified its more than 70,000 drivers in Britain as workers, meaning they are guaranteed entitlements such as holiday pay.
On the minimum wage, which stands at 8.72 pounds ($12.13) per hour for those aged 25 and over, Uber said it would apply after accepting a trip request and after expenses and that on average drivers earn an hourly 17 pounds in London.
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Uber says it will treat UK drivers as workers in wake of Supreme Court ruling
Uber said Tuesday that drivers in the U.K. who use its ride-hailing app will be treated as workers, a designation that will give them some benefits such as holiday pay. However, even as Uber seemingly concedes to a Supreme Court ruling last month, a new fight could already be brewing over the company’s decision to calculate working time from the point a trip commences rather than when drivers log on to the app.
Uber said that beginning Wednesday all drivers in the U.K. will be paid holiday time based on 12.07% of their earnings, which will be paid out every two weeks. 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 U.K. will automatically be enrolled into a pension plan with contributions from Uber. These contributions will represent approximately 3% of a driver’
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